In today’s struggling economy, being in debt is not uncommon. In fact, many individuals would borrow from a lender or even from a family member to make ends meet. This would be good if there is an income that could augment other expenses, but if there’s none, the result would be somewhat disastrous. When the time comes that you find yourself buried in debt, you have to know your options.
Be in More Debt
This isn’t a good option because it will only increase your debt. Some people make the mistake of eliminating one debt by borrowing from another lender to cover up the debt. Did you solve anything by doing this? Yes, but only on a temporary basis because you will still be paying that debt eventually and this time, with bigger interest. So if you can avoid this option, do so. It has not worked before, it will not be working now.
Sell Your Assets to Cover the Debt
Some people would sell their properties in order for them to cover any existing debt. StepChange suggests that you can sell your car, a valuable watch, or any other similar item. While this may be sound, it would only be good if you have enough assets to liquidate to cover your debt. What if you don’t have enough? After selling the property, you would be left without a home or without your other assets. In addition, you are still in debt. So if you can sell some of your assets, which cover your debt and would not leave you penniless, then this might be a good option.
File for a Chapter 7 Bankruptcy
If you are not yet familiar with Chapter 7 bankruptcy, then you should know that this may be your last option. In this type of bankruptcy, you will not be compelled to present a repayment scheme, unlike the one in Chapter 13. According to US Courts, you have to file a petition with the bankruptcy court and it will be the one to do the rest of the job. It will look into your capacity to pay, expenses and a lot more.
If you are unsure, Utah Bankruptcy Pros recommends consulting a Chapter 7 bankruptcy attorney in Utah. That way, you are assured that in each step the lawyer will be protecting your rights.
So when you are buried in debt, you have several options in your hands. You can seek more debt or you can go the better way – a Chapter 7 bankruptcy. If you choose the latter, then you will definitely appreciate how good Chapter 7 bankruptcy.