Bankruptcy will always continue to be a tough decision for many Americans. Regardless of how difficult financial situations become, many households can spend up to several weeks debating whether or not it’s time or appropriate to file for bankruptcy. If you’re in a similar situation and are struggling over whether or not you should file for bankruptcy, consider the basics to make a decision.
Deciding When to File
If you think it’s time to file for bankruptcy, first consider the bankruptcy basics. How far behind are you on paying your bills? What does your current financial situation look like? Is there any foreseeable change of income in the near or long-term future? Have you made a good-faith effort to pay back your debts so far?
After you’ve determined that bankruptcy is right for you, keep in mind that there are two types of bankruptcy options for individuals: Chapter 7 and Chapter 13. Working with the guidance of a Dallas bankruptcy attorney can ensure that you qualify for both of these options. Furthermore, learn which debts would not be cancelled, such as student loan debt. The last thing that you would want to do is file for bankruptcy only to be surprised that certain debts won’t be discharged.
Since each situation is different, also take into account what will happen to your property such as your house and cars. By taking these bankruptcy basics into consideration, you might decide to opt against a Chapter 7 bankruptcy, especially if you’re raising a family.Further, bankruptcy exemptions do cover many of your assets, but your attorney can help review your asset coverage before you file.
While deciding when to file for bankruptcy is a personal decision, it’s the minute details of the bankruptcy itself that become more difficult to manage. Should I file for Chapter 7? Or Should I file for Chapter 13? Trusting the guidance of a bankruptcy attorney will help you answer these questions as well as help you protect your property during the bankruptcy. Ultimately, it’s up to you to decide when it’s time to file, but experts can guide you through the legal process.