Is Bankruptcy a Good Option for You?

By Joseph M. Wilson, Jr., Attorney at Law

The majority of clients we speak with about their debt relief options have struggled tremendously with the decision on whether or not to file for bankruptcy protection. When debts build up and creditors begin calling repeatedly, your stress level and those of your family members may increase significantly. Many people try to ignore the problem hoping it will go away. By the time they come to our office to talk to a bankruptcy attorney, the situation is often out of control.

There are several things to consider before you choose bankruptcy as an option:

  1. Have you done a complete review of your budget and your assets? This review may turn up assets you had forgotten about that might be used for debt payment or you may find you are paying for services that are not necessary and could be cut to reduce your bills. This review of your income and assets will also determine the bankruptcy chapter under which you would be permitted to file.
  2. How much of your debt is secured vs. unsecured? What types of debt do you carry? Some debts cannot be discharged in bankruptcy – for example, student loans and unpaid taxes.
  3. Have you spoken with creditors about your situation? Some will agree to a reduced interest rate and lower payments to avoid losing out if you file bankruptcy.
  4. Have you spoken to a credit counseling agency? The more recent bankruptcy laws require that individuals wishing to file for bankruptcy protection must receive credit counseling and take an online financial management class.
  5. Have you filed bankruptcy before? If so, how long ago? There are time limits that prevent you from re-filing for a certain number of years.

If you are not sure whether bankruptcy is right for your situation, you may either call us at 1.800.556.8404 to learn more or click here to fill out a short Bankruptcy Inquiry form.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

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