should i claim bankruptcy?
| July 31, 2009 | Posted by nautalexSA under Bankruptcy |
Question: I have:
18,000 line credit
15,000 master card
1,000 over draft
3,000 visa
10,000 car
i earn approx 2,500 every two weeks.
What are my options?
Answer: You have a number of options. Since you are earning about $5,000 per month, it may be possible to repay your debts on your own. Start by making a household budget and cutting expenses to free up cash. If you are not too far behind on your payments, a debt consolidation loan may also reduce your interest payments and allow you to pay off your debts, if you qualify.
If that’s not possible, a consumer proposal should be considered. You make one monthly payment to repay your debts. If that’s not affordable, your final option is personal bankruptcy.
In your case the biggest disadvantage to personal bankruptcy may be the cost; the more you earn, the more you pay, so unless you have a large family the cost of bankruptcy may be prohibitively expensive. You should contact a bankruptcy trustee to arrange a no charge initial consultation for more information.
