How Will I Know if I Should File for Bankruptcy?

Struggling with debt is never easy, and many consumers throughout the Chicago area have made the decision to file for consumer bankruptcy. Yet reaching the conclusion that either Chapter 7 bankruptcy or Chapter 13 bankruptcy is the right option for you can be difficult. Many debtors do not know if they have other options available to them to avoid bankruptcy, or if they are even eligible for the type of bankruptcy they are considering. If you have questions about whether it is time to file for personal bankruptcy, you should always work with an experienced Oak Park bankruptcy lawyer on your case. In the meantime, however, the following are some questions you can ask yourself to determine whether filing for bankruptcy could be the right decision for you.

Are Your Debts Dischargeable?

The first question you will want to consider is whether you have the types of debts that are dischargeable in a consumer bankruptcy case. If your debts are not dischargeable, filing for personal bankruptcy likely is not the best option for handling your debts. However, if your debts are dischargeable under the U.S. Bankruptcy Code, then filing for consumer bankruptcy could be a good option. In general, credit card debt, medical debt, and other types of consumer debt are usually dischargeable in bankruptcy cases. Although student loan debt can be more difficult to discharge, it is not impossible. Some types of tax debt are dischargeable, while others are not. You should seek advice from a bankruptcy lawyer about your debt.

Are You Eligible for Consumer Bankruptcy?

The next question you will want to know the answer to is whether you are eligible for the type of consumer bankruptcy you are considering. If you want to file for Chapter 7 bankruptcy in order to have your debts discharged quickly, you will need to pass the “means test,” which is designed to show that you do not have the income or means to repay the debts you owe. If you want to file for Chapter 13 bankruptcy, you will need to be able to show that you have a steady income from which you will be able to make payments on your repayment plan. For Chapter 13, you will also need to show that your debts do not exceed the maximum limit.

Are You at Risk of Foreclosure?

Are you at risk of foreclosure? If you want to stop a foreclosure and keep your house, filing for Chapter 13 bankruptcy is often one of the best ways to accomplish this. A bankruptcy lawyer can explain how Chapter 13 can stop a foreclosure and can help you get back on track with mortgage payments.

Contact an Oak Park Bankruptcy Attorney

Filing for bankruptcy is a significant decision, and it is critical to have an experienced Oak Park bankruptcy attorney who can represent you through this complicated process. Even if you are not yet certain whether bankruptcy is the right choice for you, a consumer bankruptcy lawyer at our firm can speak with you about your situation and can discuss the benefits and limitations of personal bankruptcy. Contact the Emerson Law Firm for more information about filing for bankruptcy.


See Related Blog Posts:
Three Things to Know About Tax Debt and Consumer Bankruptcy
Frequently Asked Questions About Bankruptcy Exemptions

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