(PRLEAP.COM) July 22, 2014 – Credit Card Consolidation Loan shared in a recent article some of the questions a consumer with huge credit card debt needs to ask himself before filing for bankruptcy. The article titled Questions To Ask Before Filing Bankruptcy For Your Credit Card Debt aims to help consumers understand how bankruptcy can affect their lives.
The article starts off by highlighting the fact that there has been a decline in bankruptcy filing compared to previous years. But the decline, which is about 7% from last year, still finds a lot of people heading to bankruptcy courts to get help with their debt. Last year saw an average of 131 consumers filing for bankruptcy every single day. In 2014, there has been over 400,000 consumers who has filed for bankruptcy in almost the first half of the year. It shows that in May 2014 alone, there were over 4,000 filings.
With all these people seeking reprieve from debt through bankruptcy, there are some questions that can help get consumers do a self assessment and see if bankruptcy is right for them. The first one is credit counseling. Apart from being a mandated counseling session for people filing for bankruptcy, it can help identify other possible debt relief options that are available to consumers.
The next one is source of income. The article shares that bankruptcy is not only for people without income, it can also be for people who has sources of funds but may not be enough to pay for all the expenses. Another one is lowering standard of living. Being able to lower down expenses can help free up some funds to make extra payments over to financial obligations.
Another question to ask is if negotiations with creditors has been done already. it is best to try and talk to creditors and lenders first before filing for bankruptcy. They might be sympathetic to the consumers cause and allow for a lower monthly payment. Doing an inventory of assets is another thing to look into. A Chapter 7 bankruptcy will see that the assets are liquidated to be able to pay off the debt. But a Chapter 13 will not seize the payments and will just structure a payment schedule with creditors.
To read more about the article,, click on this link: http://creditcardconsolidationloan.org/questions-to-ask-before-filing-bankruptcy-for-your-credit-card-debt/