Knowing When to File for Bankruptcy

Watching your debt increase can be overwhelming—especially when you’re unsure how you’ll ever overcome it. For many people, declaring bankruptcy is an effective way to achieve a fresh start. However, bankruptcy is not the best option in all circumstances. Take a minute to read through this advice from Kimberly J. MacLeod, P.C., a respected bankruptcy attorney in Edmonds, WA

Talk to the Professionals

First, you need to talk to professionals that understand bankruptcy inside and out. Kimberly J. MacLeod has been focused on Chapter 7 and Chapter 13 bankruptcies since 2009, meaning she can tell you if bankruptcy will complement your financial and life goals.

Complete a Means Test

Next, it’s important to complete a means test to see if you qualify for bankruptcy. Just because you’re having difficulty paying bills doesn’t mean you automatically qualify. A quick rule of thumb is that you’ll have an easier time qualifying if your income falls below the state median income.

List Your Debts & Income

Another crucial step is to list all your debts and income in detail. If your monthly payments are less than 35% of your monthly income, you’ll likely have a difficult time persuading a judge that you’re a good candidate for bankruptcy.

Don’t hesitate to contact Kimberly J. MacLeod for more advice from an experienced bankruptcy attorney in Edmonds, WA.