4 Questions to Ask Yourself When Considering Bankruptcy

Getting into difficult financial situations is something that can happen to anyone. Whether it is caused by a job loss, medical issues, unexpected events, or any number of other things, you need to focus on finding the best solution to your situation. For many people, filing for bankruptcy is the ideal way to get their financial situation back in order. If you are considering this option, make sure you ask yourself these four questions before moving forward.

Will I Qualify for Bankruptcy?

Not everyone can qualify for bankruptcy. If the courts look at your financial situation and see that you are budgeting thousands of dollars per year for vacations, but claim to be unable to make your mortgage payment, they aren’t likely to approve any type of settlement. Of course, most people only consider bankruptcy when facing serious financial hardships that they can’t get through on their own. Just about everyone who is even considering bankruptcy will have no trouble qualifying, which should put your mind at ease.

Will Going Through Bankruptcy Solve My Financial Issues?

Bankruptcy is the perfect solution to many difficult situations, but it isn’t right in every single case. For example, in most cases things like back child support or alimony, student loans, and IRS tax debt won’t be eliminated in your bankruptcy. Just because they can’t be entirely eliminated (most of the time), doesn’t mean that bankruptcy can’t be helpful. It may be possible, for example, for these types of debts to be reorganized so that you can more easily meet your monthly obligations. This, combined with the elimination or adjustment of other debts, can really be a blessing.

What Type of Bankruptcy is Right for Me?

When filing for bankruptcy you need to determine which type of bankruptcy is going to work best for you. For individuals, the two most common options are Chapter 7 and Chapter 13. Chapter 7 will eliminate much of your debt, and Chapter 13 will help reorganize the debt. Both options can be very effective, so make sure to discuss your needs with your attorney.

Have I Contacted a Bankruptcy Attorney?

Finally, talking with an attorney is an extremely important step when filing for bankruptcy. An experienced bankruptcy lawyer can handle all the paperwork and represent your interests while in court. This will help ensure everything goes much more smoothly so you can put your worries aside and focus on ensuring that your finances are taken care of. Contact us to speak with an attorney about your potential bankruptcy.