Question

feeling overwhelmed in debt, denae reached out to a credit counselor, and together they created a budget and debt management plan. then denae lost her job and has been unable to find another position with sufficient income to maintain her budget and schedule.
what step should denae take next?

denae should
cease all bill
payments pending
her future
bankruptcy filing.

denae should
seek guidance
from an attorney
skilled in
bankruptcy law.

denae should
request an
additional line of
credit to pay
existing creditors.

denae should
conduct the
means evaluation
for bankruptcy
qualification.

Explanation:

To determine the next step, we analyze each option:

• Option 1: Ceasing all bill payments is not advisable as it can lead to legal issues and damage credit.
• Option 2: Seeking an attorney for bankruptcy law is premature without first evaluating bankruptcy qualification.
• Option 3: Requesting additional credit when income is insufficient will worsen debt.
• Option 4: Conducting a means evaluation for bankruptcy qualification is logical. It assesses if she meets criteria for bankruptcy, which is a structured process to handle debt when income is insufficient. This step helps determine if bankruptcy is a viable option before taking further legal or financial actions.

Answer:

D. Denae should conduct the means evaluation for bankruptcy qualification.