What to Think About When Declaring Bankruptcy

Many consumers wonder how they should go about making the decision to file bankruptcy.  Some are still trying to figure out if bankruptcy is the best option for their situation or if they should continue trying to pay down their debt.  There are things you should know about bankruptcy and your own financial situation that may help detail your next course of action.

Make Sure You Understand the Bankruptcy Process and Qualifications

Learn which chapter is best for your situation; either Chapter 7 or Chapter 13 bankruptcy .  Chapter 7 eliminates or discharges qualifying debt, while Chapter 13 restructures debt into a repayment plan based on income. Understand the differences between each chapter and if you do decide to file, be sure you have a clear understanding of why a specific chapter is recommended for your situation.

Discuss Bankruptcy With a Qualified Attorney

Get clarification on myths that often keep people from filing. Bankruptcy has helped millions keep their home, vehicle, retirement savings and other important assets from creditors.  Review qualifications for filing and understand requirements. You’ll be required to complete a means test that reviews household income and debt. Such requirements vary by state which is why it’s important to clarify details with a legal expert.

Review the Benefits of Filing Bankruptcy

It may help you and your family obtain the financial relief you’ve been seeking.  It may help get debt collectors off your back and stop harassing collection attempts from creditors. Plus, filing may help you gain control of your finances.  Whether you’ve experienced a divorce, unexpected expenses such as medical bills or unemployment, bankruptcy may help get you get back on your feet and move you in the right direction.