Bankruptcy is a legal process which can provide you relief from some or all of your debts. Millions of Americans have used this process to wipe the slate clean and get a new start to their lives. If you are considering bankruptcy, these are a few things to think about to see if bankruptcy is a good option for you:
1. Make a realistic monthly budget and include your mortgage and car payment. Do not include your credit card payments.
2. Figure out how much money is left over after you pay your mortgage, car loan and other basic living expenses like utilities.
3. Using the left over money, figure out if you can repay your other debts within 3 years. Use an online calculator to find out how much you must pay per month to get rid of your credit card debt in 3 years.
4. If you cannot see a realistic way to eliminate non-mortgage and non-car loan debt in 3 years, you should at least discuss filing for bankruptcy with an attorney. You can find a bankruptcy attorney in your area at the National Association of Consumer Bankruptcy Attorneys.
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