Filing Bankruptcy - Can Filing Bankruptcy Help You?

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Filing Bankruptcy

In filing bankruptcy what I should do to release me from all this debt that I'm under? Even as you read this you probably feel your stomach clenching into knots. Your breathing takes you into a full blown panic attack. Step back and breathe normally, as most people react in the same way. The information provided here is not legal advise, but it may well make it a little easier to determine if legal debt repudiation is for you.

The very first step that you should take is to review all your debt and assets. Set up a an organized list listing all your monthly living expenses. You can start the list with your monthly mortgage or rental payment. The very next thing is to put the car payment. Next the light bill, food and so on. Do not include any other debts such credit cards, finance loans etc.

After paying your monthly living expenses it's time to consider the question, "Can I pay off the rest of my accumulated debt, with what they are charging me for interest, within three years, with the money I have left over?" However, forget the minimum amount due each month and use the total repayment of your debt including interest charged over the next three years. There are tools on the World Wide Web that will enable you to make this calculation.

Next review and take every step that you can that will increase your cash flow to reduce the debt payment over that critical three year time frame. Take the steps of reducing monthly expenses, such as night out on the town, golf dates, family excursions, resetting the thermostats for maximum efficiency. Perhaps taking on a second job to increase the immediate cash flow.

If you have used every step above perhaps its time to consider professional credit councilors to help you determine if filing for debt repudiation is your only viable alternative. Exercise all caution when seeking outside help. Many of the credit councilors, will cause more harm than good. An excellent way to find a reliable councilor is to avail yourself of the state and federal court systems for debt repudiation. They maintain list of court approved councilors.

Filing bankruptcy is a very difficult decision, however if you cannot get yourself clear of debt in three years it may be the only alternative available.