Current economic situation causes a lot of people who never before have considered filing bankruptcy now see it as a possible solution to their financial problems. The problem is that not everyone can be helped through the filing for bankruptcy. So given if you are one of those individuals who have never until lately, thought to file for bankruptcy, you need to know if bankruptcy will help you or not.
Should you even think about Filing Bankruptcy?
As different as it sounds, there is no comprehensive test you can take to discover whether bankruptcy is right for you. You do not have a specific level of debt. Do not do less than a certain amount. And do not even have to be in arrears with payments to your creditors.
Bankruptcy isn’t decision you make by checking off boxes on a flowchart. Bankruptcy is a personal decision. However, it is an individual decision, based on specific factors in your life. They are some of the things you should look at before making a decision one way or the other of bankruptcy.
1st Are you in financial difficulties? You may be in difficulties if you have problems paying minimum payments on your credit card. And if you're barely able to hold necessities like food, clothing and shelter you probably in financial difficulties.
2nd If you live paycheck to paycheck? If you even had a little health problem, it will put you in a financial crisis?
3rd Are you ruling proof? Put differently, you have no assets to be confiscated and sold to pay your indebtedness? You may not need to file for bankruptcy if you have cited evidence. Then again, judgments not hang around for a while. Each State Court Rules vary on exactly how long a conviction can hang around. But what you must consider is that your current bad situation can and probably will improve in the future. If it does, these sentences were not a problem during your financial problems will interest you because you can look at the confiscation of your future assets. Most lawyers will give a free bankruptcy hearing. You must use it to talk about this very subject.
4th If creditors and collection agents harass you? Bankruptcy is an option to stop the harassment. But you can also stop it with a letter writing campaign under the federal Fair Debt Collection Practices Act and related state law fair debt collection laws. But bankruptcy is probably the best choice if you are harassed, and you are in financial difficulties (see # 1).
5th If you look at the foreclosure? You will be able to block a foreclosure by filing a Chapter 13 bankruptcy. Chapter 13 allows you to restructure your debt and pay your mortgage arrearage over time.
Will bankruptcy help you?
Bankruptcy will not give you more income. So if you do not earn enough money to support your lifestyle, bankruptcy is not the answer. You either have to lower your expenses or increase your income. You may even have to do both. But you do not need to file personal bankruptcy.
Bankruptcy will not help if your primary debt is non-dischargeable debts. Bankruptcy legislation defines those debts that are dischargeable and those who are not. The following is a brief list of some non-dischargeable debts in a Chapter 7 bankruptcy under current bankruptcy law.
* Recent tax and public sanctions
* Child support
* Criminal fines and court ordered restitution
* Personal prices, where the debtor was drunk at the time of the incident
* Debts not listed in the bankruptcy filing schedule
* Student loans (there are exceptions, but it is almost impossible to fulfill the prerequisites for them. So it is advisable to consider student loans as non-dischargeable)
* Debts that were part of an existing bankruptcy proceedings, but was not completed
Closing Considerations for Personal Bankruptcy
Making Up One's Mind, to file for bankruptcy is not an easy decision. But it is a decision you will be able to do if you take a reasoned and balanced approach to it. As a part of your salary, you should consider your feelings, your background, your religious beliefs and your values. So consider the following:
1st Do your own research. Read everything you can about bankruptcy. A phenomenal resource to educate yourself about bankruptcy law, the book The New Bankruptcy: Will it work for you?
2nd Keep your future in mind. Consider how you would feel if the case is closed and you're out from under a pile of debt. How would you feel about yourself in six months or a year? Would you be happy with your choice to either file bankruptcy or not to file for bankruptcy?
3rd Find the right bankruptcy lawyer for you. A great place to find bankruptcy lawyers in your region is Legal Match. Virtually all bankruptcy lawyers will give you a free bankruptcy consultation. Use this free consultation to interview the lawyer. But when you start interviewing bankruptcy lawyers do not base your ultimate employment decision completely on price. It would be tempting to engage the cheapest. After all, you are in a financial crisis, so the more affordable the better, right? It is not always the case. Interview the lawyer first. Be sure you are a good match with the lawyer. Your bankruptcy lawyer will work for you, so you should be familiar with the general approach to your cause. You have to feel good about the interaction you have with the lawyer and staff. You want a bankruptcy lawyer who will help you through this crisis in a positive way. You do not want to feel the sentence or disfavor from either the lawyer or staff.
4th Filing bankruptcy is a moral decision. Do not fool yourself into thinking it is not. But you have to make a decision that is best for you and your household. Then ask yourself: "Is it more respectable to fight a futile financial struggle that puts your family's future in jeopardy in an attempt to pay back old debts?" Or is it more honest to recognize you did your best, you can not make it work, and you need a clean boot that will allow you to use your personal time and effort into activities that would more than welcome affect your family's future? “
Only you may answer this question. Take your time. Make the right decision for you and your family. Once you've made this decision, the faith in your power to make a correct choice. So, ahead know that your financial crisis soon will slide off.
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