One way to check your debt situation is to determine your debt to income ratio. This is the ratio between your monthly gross income (before taxes) and the amount you pay each month to creditors. This is an important ratio because it determines whether or not a person is eligible for a mortgage. Even if you don’t plan on applying for a mortgage, however, it is a good way to gauge whether your debt issues have become untenable. A St. Charles Bankruptcy Attorney can examine your situation to determine if you are spending too much monthly income on repaying debt.
St. Charles Bankruptcy Attorney on Paying Down Debt
As an example, let’s say that a single person makes $4,000 per month before taxes. Their bills each month come to $1,000. That means their debt to income ratio would be 25%. This is a very high number that would probably make them ineligible for most mortgages. If this were a person’s situation, they would need to devise a plan to bring down that monthly obligation. By taking account of your monthly debts and using all possible disposable income to attack debt.
A St. Charles Bankruptcy Attorney can help you calculate your debt to income ratio to determine if bankruptcy is right for you. Depending on the type of debt you have and the number of assets you have, it may be possible to discharge this debt entirely. A lawyer can explain your options based on your individual circumstances.
At Westbrook Law Group, we understand how stressful overwhelming debt can be. We work with clients to find the best options for their debt problems, helping you get a fresh start while keeping as many of your assets as possible. To speak with a St. Charles Bankruptcy Attorney about your debt problems, contact Westbrook Law Group today for a free consultation.