Considering Bankruptcy? 5 Factors Debtors Should Review

Before filing bankruptcy you should have a clear idea of what is going on with your finances.  In short, review your situation in detail to understand if bankruptcy is the right solution.  Discussing your situation with a bankruptcy attorney may include comparing other options to help resolve problems.  Learning how bankruptcy can help you is one matter, but understanding the facts about it is another.  Many who consider filing look over pertinent facts or choose not to file and instead, believe myths without getting full knowledge.  Factors such as unexpected medical bills , change of income, job loss, motor vehicle accident and disability could weigh on your decision to file along with a few others.

  1. How would your situation benefit from filing bankruptcy? There are advantages to filing but you’ll need to understand how and if your situation will benefit from them.
  2. Will bankruptcy eliminate your debt?  Many types of unsecured debt can be discharged but the process may not wipe out all of your debts.  How about secured debt? Maybe Chapter 13 bankruptcy can help you reorganize your debt if you have been unsuccessful at reaching an agreement with creditors.
  3. Analyze your budget to understand where your income is going.  Learn whether or not you have the ability to continue paying bills each month.  Are you able to make necessary purchases without faillng behind or struggling to get caught up?
  4. What are your alternatives?  Bankruptcy may not be your only option to help you control debt.
  5. Discuss your situation with a bankruptcy expert.  An experienced attorney can help review your situation and give advice on the best direction to take.