Law Office of James L. Keenan

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James Keenan Law

Contact me for a free consultation!

PH 916.448.6923

TXT 916.715.6145

EMAIL James now!

Contact me for a free consultation!

PH (916) 448-6923

TXT (916) 715-6145

EMAIL James now!

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Debt, Income and Bankruptcy

Debt, Income and Bankruptcy

Debt, income and bankruptcy are financial factors that dictate the consumer economy. Debt-to-income ratio is the starting point for evaluating consumer credit. The higher your income, the better your credit. The more debt you have, the worse your credit. Or at least that is the big picture.

Consumer credit controls the cost of financing. The better the credit, the better the cost. Debt and income are obvious factors in this formula. But how does bankruptcy fit in? Filing bankruptcy allows you to discharge your debts. This means the debts are eliminated and never have to be repaid.

debt reliefThough bankruptcy is an initial negative on your credit after you file, discharging your debts at the conclusion of your bankruptcy is a big benefit. How big that benefit is to you depends on the amount of debt your discharged, or eliminated. By weighing the cost of the bankruptcy impact versus the discharged debt is the essential evaluation of whether to file for bankruptcy. If you have big debt and little income, bankruptcy may be a good option for you. If, though, your debt is not too great and your income enough to handle that debt, maybe bankruptcy is not your best bet. Every situation is different.

Even if your debt-to-income ratio seems ok, bankruptcy may still be a benefit if you have a disproportionate amount of certain debt. Typically credit card debt imbalance in your personal finances will warrant the need to file for bankruptcy. This type of debt does not enhance your income. As such, it is viewed as a drag on your credit.

By discharging your debt through a bankruptcy filing, you can clear your debt-to-income ratio. By doing so, your ratio is cleared for as long as you do not accumulate any more debt. Your bankruptcy impact is only temporary. Though a bankruptcy filing lasts on your record for years longer, improving your credit generally takes only a couple of years.

With the economy still sputtering to return to full strength, debt, income and bankruptcy are concerns for consumers. This story reflects the financial predicaments of many Americans. Even if you can do noting to increase your income, you can do something about your debt.

Learn more about your financial options by scheduling a free consultation today!

Bankruptcy Discharge of Credit Card Debt
Bankruptcy and Wage Garnishments

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Law Offices of James L. Keenan

2600 H St. Sacramento, CA 95816

Phone: 916-448-6923

Fax: 916-442-6524

Email: jameslkeenan@aol.com

Office Hours: Monday – Friday 8 a.m. – 5:30 p.m.

Evening Appointments Available

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Disclaimer: The legal information presented at this site should not be construed to be formal legal advice, nor the formation of a lawyer or attorney client relationship. Any results set forth herein are based upon the facts of that particular case and do not represent a promise or guarantee. Please contact James Keenan personally for a consultation on your particular matter. This web site is not intended to solicit clients for matters outside of the state of California.