Washington residents may not always know whether they should seek bankruptcy protection. When is debt discharge preferable to attempting an individual fix? Although bankruptcy is often unfairly stigmatized, it can be a good solution for those facing overwhelming consumer debt. Bankruptcy exists for a reason, and it is designed to help those Washingtonians who are truly in need of debt relief.
Those in financial straits should explore other options before deciding on bankruptcy. For example, debt can be consolidated through home equity loans or second mortgages. Debt settlement is also an option for those who are being hounded by creditors. Some of those options require unreasonable contributions to special savings accounts, however, and debt-management firms are not always honest. Bankruptcy can help you start fresh, without the serious consumer debt that has been plaguing your finances.
Further, it helps to determine whether you are considered insolvent. Insolvency occurs when your total debts outweigh the value of your personal assets. If you have overspent to the point that you cannot pay off your debt, you are likely categorized as insolvent.
Washingtonians who are dealing with creditor harassment and aggressive collections calls may also be ready for a little peace. Filing for bankruptcy won't have that much of an effect on your credit score, for instance, if it is already rather low. Consulting with a qualified bankruptcy attorney in Washington state can help clients learn more about their bankruptcy options, especially for those who feel overwhelmed by credit card debt. Filing for bankruptcy may sometimes be the best option, even if you had never considered it before. A clean financial start can set you up for a prosperous future!
Source: Daily Finance, "How to Know When Bankruptcy Is Your Best Option" Katherine Muniz, Jan. 26, 2014