When your debt has become so overwhelming you are not sure you can pay it off, you might be considering bankruptcy as a way out. It is important to understand the totality of the debt you have before making any hasty decisions. Perhaps once you review the full sum of your debt, you can devise an adjusted budget that will help you pay it off without the need for bankruptcy. Or, after looking at your debt-to-income ratio, you may find that bankruptcy is your best option. Everyone’s financial situation differs, and what works for you may not be feasible for someone else. Working with an experienced bankruptcy lawyer in Indiana is a good way to have your questions answered and a means to get the direction you need to make the right decision for your unique circumstances.
It can be a challenge to put together a comprehensive and complete list of all your debts, especially if you are only relying on your Indiana credit report. There are some debts that you may owe that will not show up on your credit report in Indiana. Typically, unpaid medical bills and charges from local companies are not listed on your credit report. This is why you need to take a step-by-step strategic approach to calculate all of your debt.
How to Calculate Debt in Indiana
Medical bills are confidential in nature, which is why these costs tend not to show up on a person’s credit report. Also, debt accrued from medical care and treatment is not meant to impact your personal finances so they are not reported with regard to your credit. However, if you are significantly behind on your medical bills, such as being at least six months or more overdue, then things change and these outstanding costs could begin to impact your credit. If you are getting calls from a collection agency or if you are facing a lawsuit for payment for your unpaid medical bills, then it is likely your credit report will show these actions.
Likewise, many local service providers will also not be included in your credit report unless you are so far behind that collection agencies get involved. So you could have bills from a neighborhood gym, a utility, or a cleaning service that are not up-to-date and are not listed on your report. This is also true for lines of credit or open tabs you have with different local vendors.
Even though not all of your debt is likely to show up on your credit report, using this reference is still going to be helpful. First, though, look through your bills and all statements to identify which are paid and unpaid. Then take some time to think about anything that may be missing which you can remember you may not have paid. Write these incidents down. Finally, use your credit report to help confirm your debt and fill in the blanks.
Speak to an Indiana Bankruptcy Attorney Today
Christopher L. Arrington is a Danville bankruptcy lawyer who can help you assemble your debt to get a full picture of the financial challenges you are facing. Together you and Christopher L. Arrington, a compassionate and skilled Indiana bankruptcy attorney, will be able to figure out the right actions to take to alleviate your financial stress in the most beneficial way possible. Call Christopher L. Arrington today to schedule a free consultation at (317) 745-4494.