Sanders Law Firm
View Our Practice Areas

Bankruptcy could be the right option if you're struggling in debt

When you took out your credit cards and bought your home, you were in a great position financially. You had a job that was stable and an income that hadn't changed for years. You didn't expect anything to happen to alter that.

Unfortunately, a run-in with your new supervisor led to an unexpected dismissal. While it was unfair, there was nothing you could do to get back to your job, and your finances took a hit. Now, you're struggling to make ends meet and may not be able to pay what you owe.

Bankruptcy could be an option

In your case, there are many things to do, but bankruptcy could be an option if all else fails. For cases where you haven't yet missed payments or can still meet your minimums while looking for work, it's best to do so and "tread water" while you get your finances back in order.

If your credit is still good and you haven't missed payments in the past, you may want to consider a consolidation loan to reduce the amount you owe each month. You could also reach out to your lenders and see if they offer assistance to people who end up in situations like yours, where you suddenly find yourself without work or an income.

When you can't make other arrangements to pay off what you owe, bankruptcy can be a good option

If you have attempted to pay back debts but fell behind, face foreclosure or have to deal with threatening phone calls, it's time to consider bankruptcy. If your credit is already poor from missing payments, chances are that bankruptcy won't cause much more damage, if any at all.

How do you decide if it's the right time for bankruptcy?

The first question to ask is if you could feasibly pay off what you owe in the next two years. Maybe you've been able to get a lower-paying job and can make ends meet, but you're not making much of a dent in what you owe. That's frustrating, but if there is a chance that you'll still be able to pay off those debts in two years or that you'll move into a higher paying position soon, you may not want to risk bankruptcy and the damage it would do to your credit.

Overall, it's impossible to say when bankruptcy is right for anyone in particular without looking at their accounts. Your attorney can work with you to let you know the best options for you in your situation.

No Comments

Leave a comment
Comment Information
  • The National Trial Lawyers | Top 40 | Under 40
  • The American Society of Legal Advocates
  • Super Lawyers | Avvo Rating | Superb
  • Star Bar Of New Mexico
  • 10 Best | 2017 | Client Satisfaction
  • Top 10 Attorney And Practice Magazine's
  • distinguished Justice Advocates | top 1% attorneys in America
  • top listed in best Lawyers
  • rated by super lawyers
  • The National Trail Lawyers | Top 100
Email Us For A Response

Contact Us Today. Call 575-578-4392 or complete this form to schedule a consultation with our legal experts.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Offices Conveniently Located in Roswell, Albuquerque & Hobbs

Roswell Office
701 West Country Club Road
Roswell, NM 88201

Toll Free: 866-755-7229
Phone: 575-578-4392
Fax: 575-622-5853
Map & Directions

Albuquerque Office
4801 Lang NE
Suite 110
Albuquerque, NM 87109

Toll Free: 866-755-7229
Phone: 505-798-2588
Map & Directions

Hobbs Office
732 E. Michigan
Suite 500
Hobbs, NM 88240

Toll Free: 866-755-7229
Phone: 575-318-2887
Fax: 575-393-0565
Map & Directions

Las Cruces Office
1990 E Lohman Ave
Las Cruces, NM 88001

Phone: 575-222-1111
Map & Directions

Ruidoso Office
1100 Sudderth Dr
Ruidoso, NM 88345

Phone: 575-222-1111
Map & Directions