When Should You Consider Filing?

Determining When Bankruptcy Is the Right Choice

The decision to file bankruptcy should never be taken lightly. For some, bankruptcy can provide immense relief and an opportunity to start over. For others, it is not the best option. At RHM LAW LLP , our attorneys can help you weigh the pros and cons. We can evaluate your financial situation and help you decide whether filing Chapter 7 or Chapter 13 is the best path for you.

Call our firm at (213) 344-0043 to schedule a free initial consultation. Our experienced bankruptcy lawyers welcome the chance to meet with you and discuss the specifics of your particular situation.

When Is Bankruptcy a Good Solution?

If you are facing an urgent situation, such as a foreclosure, repossession or garnishment, it may be time to file for bankruptcy. When considering whether to file, ask yourself the following questions:

• Is your total unsecured debt more than 50 percent of your take-home pay?
• Are you borrowing money from one credit card to make payments on another?
• Are creditors harassing you through phone calls and letters?
• Are you forced to buy necessities, such as food and clothing, on credit?
• Are you frequently late paying bills?
• Is financial stress causing problems with your health, marriage or work life?

If you answered “yes” to some of these questions, you may want to consider filing bankruptcy. Immediately after filing, an automatic stay goes into effect, stopping all creditor harassment, foreclosures, repossessions and most garnishments. This will give you time to breathe and make a plan for the future.

When Is Bankruptcy Not the Best Plan?

If you are able to repay your debts on your own, bankruptcy may not be the right choice for you. You may be better off working on maintaining a trimmed budget and seeking a loan modification for car or home loans. If bankruptcy is not in your best interests, our attorneys will not hesitate to let you know.

Free Consultation · Se habla español

If you are struggling with overwhelming debt, consider whether bankruptcy can help you get back on the right track. Contact RHM LAW LLP to arrange a free initial consultation and discuss your situation. From our offices in Los Angeles and Encino, our firm serves clients throughout Southern California.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.