Determining if Bankruptcy is the Best Option

Is Bankruptcy Your Best Option?

Bankruptcy is usually the last option for debtors but some don’t take time to review qualifications and requirements.  Deciding to file bankruptcy may depend on several factors.  It helps to review your situation thoroughly as well as review alternatives to filing. There are different types of bankruptcy you can file.  Most debtors look to file either Chapter 7 or Chapter 13.  Chapter 7 bankruptcy discharges or eliminates qualifying debt within 6 months.  Chapter 13 bankruptcy is a repayment plan approved by the court that last anywhere from 3 to 5 years.

There are alternatives to bankruptcy that you could also review such as a debt settlement or debt consolidation.  If these options have already been sought and bankruptcy is considered, make sure you review eligibility factors for filing.  The means test helps review your income situation and helps determine which chapter may be a better option. Bankruptcy discharges debt but not all debt qualifies for elimination.  You’ll want to review which debts can be wiped out and which ones you may still be responsible for.  If you are having trouble with mortgage payments, Chapter 13 bankruptcy may help you keep your home while getting caught up on missed payments.  Chapter 13 may also be an option to help you keep your vehicle.

Other things to consider when filing include understanding personal property exemptions.  The exemptions may vary from one state to another but include a wide range of assets including insurance policies, retirement accounts, jewelry, home equity and more.  If you are considering bankruptcy, reviewing your situation with an experienced Dallas bankruptcy attorney may help determine if filing is best for you.