Working With The Right Legal Professional

Is Bankruptcy The Right Choice For You?

18 August 2021

Elli Palo

When you have more debts than income, you might reach a point where you start skipping some of your payments. When this occurs, it will not be long before you reach a point where you do not know what to do. At this point, you might want to consider bankruptcy. Bankruptcy is a great solution for some situations, and here are some of the ways you can know if it is right for you.

Understand the Eligibility Requirements

Before you can decide if you want to file for bankruptcy, you may want to learn the eligibility requirements. You can evaluate two main branches of bankruptcy during this step, which are Chapter 7 and Chapter 13. You can determine which one you qualify for, which might be just one or both. If you qualify for both, a lawyer can help you decide which one is better for you.

To qualify for Chapter 7, you cannot earn a lot of money. You will also need to make sure that you have enough qualifying debts to make it worth your while. For Chapter 13, you must earn enough money to repay your debts.

Know the Signs to Look For With Your Finances

The second thing to consider is the signs that may indicate you need bankruptcy for relief. One sign is skipping payments. If you begin skipping payments, you may need the relief that bankruptcy offers. The second sign is creditor harassment. If creditors call nonstop, you might need to file for bankruptcy to receive relief from this issue. Another sign that you need bankruptcy is maxed-out credit lines. If you no longer have any credit to use for any reason, you might need bankruptcy.

Talk to a Bankruptcy Attorney

If you believe that bankruptcy might be a good option, you should consider talking to a bankruptcy lawyer. A lawyer can help you determine if you qualify and which branch to use. They can also help you see the benefits that bankruptcy provides, as well as the consequences of filing. If you decide to file, your attorney will walk you through the process to help you get the most out of your bankruptcy case.

If you meet the requirements to file for bankruptcy and need relief, you might want to file. You can learn more about bankruptcy by visiting with an attorney of your choice. Your attorney can answer your questions and help you learn your options.

Share