Should I File Bankruptcy?

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There is no right or wrong answer to the question of whether a bankruptcy is appropriate and the decision to file for bankruptcy should not be made lightly.  Although filing bankruptcy is primarily an economic decision, most people also consider their social, cultural, religious, and moral values when deciding how to handle debt issues.

Part of the decision on whether to file for bankruptcy should be based on your debt to income ratio. If your ratio of unsecured debt to income is over 35-40% our experience is that you will have little hope of avoiding bankruptcy.  We can assist you in computing and analyzing your debt to income ration during an initial consultation.

You might also consider bankruptcy if you face any of the following scenarios*:

  • Your wages have been garnished or your bank account has been attached
  • Most of your debts are unsecured debts such as credit card bills, hospital or doctor’s bills, etc.
  • Your total debt, not including a car or house loan, is more than you could pay, even over five or more years
  • Collection agencies are calling you at home and/or at work
  • Your payments are more than 30 days behind on more than one bill
  • There are lawsuits pending against you
  • You have high medical bills not covered by insurance
  • You owe income taxes that you are unable to currently pay
  • You have few assets
  • You have little or no savings
  • You have had property repossessed (such as a vehicle)

If any of the bullet points above apply to you, we urge you to seek help from a certified bankruptcy lawyer sooner than later. A certified Montana bankruptcy attorney can assess your situation and give you realistic advice so you can make an informed decision. Contact Cossitt Law today at 406-752-5616 for an initial consultation. We can help.

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