How To Decide When Bankruptcy Is The Right Answer

Charlotte Bankruptcy attorney Bryan W. Stone answers the question: “How do I file for bankruptcy?”


No one is eager to rush into bankruptcy. The process can be long and embarrassing and is certainly not something that anyone looks forward to. That being said, bankruptcy can be a tremendous benefit to those truly struggling under the weight of unsustainable levels of debt. So how do you know when it’s time to seriously entertain filing for bankruptcy? Keep reading to find out.


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First things first, anyone considering filing for bankruptcy should go get some quality credit counseling. Not only can this help be beneficial in laying out a range of other options, it is required for all those who do ultimately decide to file for bankruptcy protection. That means you’re going to need to go through the counseling at some point anyway so you might as well do this early on to get a better sense of your financial situation and your options moving forward.


Get advice


After you get some counseling and have more information to base a decision off of, you should also spend some time seriously considering alternatives to bankruptcy. For example, you might be able to consolidate certain debts by working with creditors or apply for a home equity loan to free up badly needed money. There are several other strategies that might work to solving your financial issues that should be fleshed out fully before moving ahead with the bankruptcy process.


Do some math


Many experts say that bankruptcy becomes a possibility worth considering when you are truly insolvent. Insolvent means that your debts exceed the total value of all your assets. For bankruptcy to be worth considering you must not be able to reasonably pay these debts.


Some final thoughts


Another thing to consider that might indicate that bankruptcy is right for you is the level of your frustration over aggressive collectors. If the problem is a minor one, then maybe you can try paying them on your own. If, however, you receive calls frequently from aggressive collectors, bankruptcy might be the best approach to ending the abuse. Those who don’t own much property but have large amounts of debt also can benefit from bankruptcy since they don’t stand to lose much of anything except the burden of unpaid bills. Finally, those with already low credit scores won’t be impacted too dramatically after a bankruptcy. Though none of these factors guarantee that bankruptcy is the right decision, taken together they can give you a better idea of whether bankruptcy might make sense in your case.


If you find yourself needing the services of a Charlotte, North Carolina bankruptcy attorney, please call the skilled lawyers at Arnold & Smith, PLLC today at (704) 370-2828. As professionals who are experienced in the bankruptcy arena, our attorneys will provide you with the best advice for your particular situation.


About The Author: 

Bryan 1  Bryan Stone is a Partner with Arnold & Smith, PLLC where he focuses his practice on all aspects of bankruptcy, including: Chapter 7, Chapter 11, Chapter 13, home loan modifications and landlord tenant issues.  Originally from Macon Georgia, Mr. Stone attended the University of Georgia for a BBA in Banking and Finance and went on to Wake Forest to earn his law degree.  After law school Mr. Stone relocated to Charlotte where he has become quite involved in many local organizations.  He is currently the Chair of “Bravo!” the young professionals organization of Opera Carolina, he also founded the UGA Alumni Association of Charlotte.  In his spare time he enjoys perfecting his BBQ skills for the annual “Q-City BBQ Championships” and playing softball with the Mecklenburg County Bar Softball League.



“How to Know When Bankruptcy Is Your Best Option,” by Katherine Muniz, published at



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