Net Worth

When determining how wealthy a person is, his or her assets are not the only thing that must be considered. Even if someone has a garage full of Ferrari’s, he or she may not be as well off as he or she appears. When figuring a person’s actual worth, you must subtract all liabilities from all assets. The resulting figure is called the net worth.

For more information on figuring one’s net worth, or if you have recently discovered you have a negative net worth, contact a West Palm Beach bankruptcy attorney at the law offices of Eric N. Klein & Associates, P.A. Call 561-353-2800 today to schedule a free consultation.

Negative Net Worth

Negative net worth occurs whenever a person has more liabilities than assets; however, this does not necessarily mean that a person needs to file for bankruptcy. So long as the debtor has a reasonable payment plan and a consistent income, he or she may be able to transform a negative net worth into a positive one.

It is especially common for a person to have a negative net worth after taking out a loan for a business venture. When stating a business, it is often necessary to take out loans to fund initial costs; however, if the business succeeds, the debt can quickly move into profit.

Contact Us

If you are struggling to keep up with your finances, or if you have questions regarding net worth, contact the West Palm Beach bankruptcy attorneys at the law offices of Eric N. Klein & Associates, P.A. by calling 561-353-2800 today.