If you live in Buffalo, New York and are looking for a way to clear out your now already overwhelming debts, declaring Buffalo bankruptcy may be the right option for you. We recommend you ask a bankruptcy attorney in your area for free initial consultation and find out if filing for personal bankruptcy really is the best choice in your situation.
The following article has been provided by our Buffalo bankruptcy attorney.
How do I know if I need to declare Buffalo bankruptcy?
This is a very common question we are asked in Buffalo, and in fact throughout New York and the United States. How do I know if I need to declare personal bankruptcy, either under Chapter 7 or Chapter 13?
The answer is simple. You need to go bankrupt if there are no other logical options open to you to deal with your debts. Before deciding to file Buffalo bankruptcy, consider your other options.
First, is your bad credit a result of events that have already happened and are finished, or events that are still on-going? For example, if you got behind on your bills while you were out of work, but you are now back to work, the event that caused your financial problems is in the past. However, if you are still looking for a job, declaring Buffalo bankruptcy won’t help now with your bills, because you still don’t have a steady income.
Second, you should see if you can borrow money from family or friends to repay your debts. If your debts are small, or if you have family or friends who are financially well off, this might be the best solution. But beware, you will see your family and friends often, and if you are unable to repay them, it will put a strain on your relationships.
If that doesn’t work, a debt consolidation loan from a bank may help you. By borrowing at a lower interest rate than you are paying on your credit cards, and combining all of your payments into one payment, you may be able to re-organize your financial affairs so that you are no longer struggling with a huge debt burden.
If you can’t get a loan, a “deal” or a plan with the people you owe money to may be an option. In Buffalo it’s called a Chapter 13 Wage Earner plan, which is an alternative to Chapter 7 bankruptcy where you make payments to your creditors over a period of time.
As a last resort, if all other options are not viable, Chapter 7 bankruptcy may be the final option to clear your debts and give you a fresh start.
By reviewing all of your options, you will be able to determine if Buffalo bankruptcy, or an alternative to personal bankruptcy, such as a debt consolidation loan, is best for you.