Net worth may not reflect a person’s income or even their ownership of property. A person’s net worth is instead defined as the total of all their assets, less their debts. People with good credit scores typically have a positive net worth. The wealthy typically have a high net worth. Those in bankruptcy, by contrast, are most likely to have a negative net worth.
Calculating Net Worth
To calculate an individual’s net worth, one must take all assets (real estate, investments, stocks, cash, etc.) and subtract the value of debts (car loans, private loans, student loans, credit card debt, etc.). Accordingly, a person with equal assets and debts has a net worth of $0. If you are in a position to file for bankruptcy, it is likely that you have a negative net worth. A successful bankruptcy filing can eliminate debts, or provide you with the opportunity to make alternative repayment arrangements.
If you are sinking into a negative net worth, you do have options. Filing for bankruptcy may be the best option to recover from debt standing on two feet. Contact the Milwaukee bankruptcy attorneys at the DeLadurantey Law Office to begin your financial recovery. Call today at 414-377-0518.