We all have to spend money on a daily basis, but we don’t all have to risk falling into debt and declaring bankruptcy. Recently, I came across an article that talked about how many of us risk debt because we’re unaware of or we do not accept our financial status. Here are some common financial thought processes of people in Littleton, Parker, Greenwood Village or anywhere else in Colorado.
Risks of Poor Financial Thought Processes in Lone Tree
The first thought process the article mentioned was the example of a person thinking they need a new vehicle for reliable transportation. However, new cars are pricy. They are pricy enough to lead someone straight into debt if they think that new cars are essential. There are plenty of used cars that are trustworthy. And, they will save you money.
Another point mentioned was that people feel they are financially prepared for their retirement. However, retirement is a big deal, and often needs to be prepared for at a young age. This is not something young people think about because retirement seems so far off. Simply thinking that you have enough for your retirement because you have a steady job does not mean that you are well-prepared. Retirement planning is a process that requires realistic and thoughtful actions, such as saving your money or becoming a member of the American Association of Retired Persons.
People may also think that their credit score is okay without checking it. But this is not something to ignore because it can impact what you qualify for financially. It’s important that your credit score is checked and that you keep it high enough to ensure you are creditworthy. A credit score that gets too low can be scary because you could end up in a place where it is difficult to pay back debts.
[pullquote align=”center” textalign=”center” width=”100%”]Contacting the best bankruptcy attorney is vital to help you decide if Chapter 7 or Chapter 13 bankruptcy filing is right for you.[/pullquote]
What Are My Options? Chapter 7 and Chapter 13 Bankruptcy in Highlands Ranch and Across Colorado
1. If you need a new car and have fallen into debt because of it, Chapter 7 Bankruptcy may help. Chapter 7 bankruptcy is a liquidation bankruptcy, which means that your assets will be collected and any that are not exempt will be sold. Any amount exempted will be repaid to you. If your vehicle is being used to get you to work, it is exempt up to $3,000, or to $6,000 if receiving medical care. A car is also considered a secured debt, which means you can keep it if you sign an agreement to reaffirm the debt.
2. If improper planning for retirement or a low credit score has led you into debt, Chapter 13 may be a good option. This option allows you to create a repayment plan, which is worked out between you and an experienced bankruptcy attorney. This plan is then approved by the bankruptcy court. If you need time to relieve yourself of any debt, Chapter 13 will allow you to pay off your debts between three and five years. You are also able to keep any secured assets you may have, such as a home or a car.
Why You Need the Best Bankruptcy Lawyer
Watching the way your money is spent can be tough at any age, but it can certainly become a bigger challenge as you get older. Take it from a trusted bankruptcy attorney when I say that you are better off saving your money and planning for your future. A steady income today is not enough. I understand the challenges that debt can create, and I want to provide my clients with as much hope as I can with Chapter 7 and Chapter 13 bankruptcy. If a new car, problems with your retirement planning, or a low credit score have caused you stress, don’t hesitate to contact me for a free consultation to talk about your options.
If you haven’t thought properly about your finances and have experienced debt as a result, don’t hesitate to contact experienced bankruptcy lawyer at 303-205-7870 to get a fresh start. Attorney Barry Arrington will work to get you the best fresh start possible.