Should I File Bankruptcy?
Find out if you are eligible to file for bankruptcy and why declaring bankruptcy may be your best option.
What is bankruptcy?
Bankruptcy is a legal action that allows an individual or business that cannot meet its debt obligations to either work out a plan to repay the money owed over time or completely eliminate most of the bills.
Why should I file bankruptcy?
There are many reasons as to why you should consider talking to a professional about filing for bankruptcy. Some of the following situations should serve as a forewarning that you might be in serious financial trouble, which will require the help of an experienced bankruptcy attorney.
- Continually getting telephone calls and/or mail from creditors or collection agencies
- Exhausting your savings account
- Spending all your money before receiving your next check
- Putting off one creditor to pay a different creditor
- Purchasing things on an impulse
- Having to use your credit cards to pay for daily expenditures
- Not budgeting your money or following a clear financial plan
- Having your consolidation loan applications rejected
- Struggling to make the minimum monthly payments on your credit cards
- Not having a clear idea of what your monthly expenses are
What's the difference between secured and unsecured debt?
Secured debt is a creditor's claim that is secured by a lien of some type in your property, either by your voluntary or involuntarily agreement such as with a court judgment or taxes. A creditor can institute a foreclosure or repossession to take the porperty identifed by the lien and secures the debt in the event of bankruptcy. An unsecured debt is not tied to any item of property, leaving the creditor without any claim to property, which will satisfy the debt.
Which chapter of bankruptcy should I file?
Consumers will most often file Chapter 13 bankruptcy, by which repayment is made to creditors, or under Chapter 7 bankruptcy, where the debts are discharged. Each chapter of bankruptcy will help you identify the following:
- Which bills can be eliminated
- How long payments can be prolonged
- Which possessions can be kept
- Any additional information
The selection of which type of bankruptcy is appropriate to file depends on your particular circumstances. and whether or not there are assets available to repay all, or part, of the debts owed. Bankruptcy laws can get complicated, so determining if you should claim bankrupt and what type of bankruptcy you need should be acknowledged and thoroughly discussed with an experienced bankruptcy attorney.
We are a Debt Relief Agency. We help people to file for bankruptcy under federal law.
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