Is Bankruptcy a Solution for Me?

When you are struggling with consumer debt, it can be difficult to know if personal bankruptcy is an option for you and, if so, whether it is the best solution to get a handle on your debt. While the best way to think through the bankruptcy process and its implications for you is to speak with an experienced Oak Park bankruptcy attorney, you can also ask yourself a number of questions as you consider whether it is time to get in touch with a bankruptcy lawyer about moving forward with a Chapter 7 bankruptcy or Chapter 13 bankruptcy case. The following are some questions to ask yourself as you think about the possibility of filing for consumer bankruptcy.

Are You Eligible for Bankruptcy?

Before you begin thinking seriously about bankruptcy, it is essential to determine whether you are eligible to file for personal bankruptcy. There are two types of bankruptcy that are most common for consumers: Chapter 7 bankruptcy and Chapter 13 bankruptcy. To qualify for Chapter 7 bankruptcy, the U.S. Bankruptcy Code requires consumers to pass the “means test,” which shows that the consumer’s income and assets are low enough that a liquidation bankruptcy makes sense. Differently, to qualify for Chapter 13 bankruptcy, a consumer must be able to show that she or he is a wage earner who can make regular payments on a three-to-five-year repayment plan.

Are Your Debts Dischargeable Through Consumer Bankruptcy?

Even if you are eligible for bankruptcy, there is no sense in filing if your debts are not dischargeable according to U.S. bankruptcy law. An experienced lawyer can assess your case to determine whether or not your debts are dischargeable.

Do You Have Cosigners on Your Debt?

If you have cosigners on any of your debts, you should know that bankruptcy will not result in a discharge for your cosigners; they will still be responsible for the debt. Accordingly, you may need to plan to reaffirm that debt or consider other options.

How Will Bankruptcy Affect Your Home?

Will a Chapter 13 bankruptcy allow you to keep your home and avoid foreclosure? This is a common reason that people file for bankruptcy, and it may be the best reason to consider filing if you are at risk of foreclosure because you are behind on mortgage payments.

Do You Have Other Options to Repay Your Debt?

It is always important to consider whether you have other options to repay your debt. If you do, bankruptcy may not be the best choice for you. However, if you do not have other options for repaying your debt or working out a reasonable payment plan with creditors, you will likely want to consider bankruptcy as a serious option. Before you take any steps toward filing, however, you should work with a bankruptcy lawyer to ensure that you are eligible for bankruptcy and that your debts are indeed dischargeable.

Contact Our Oak Park Bankruptcy Attorneys

When you are considering bankruptcy but are not sure if it is the right course of action for you, it is critical to seek advice from an experienced Oak Park bankruptcy lawyer who can help. Contact the Emerson Law Firm to speak with an advocate at our firm today.



See Related Blog Posts:

Can I Back Out of a Bankruptcy Case if I Change My Mind?

How Does Chapter 13 Bankruptcy Result in a Debt Discharge?

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