Considering Bankruptcy? Bankruptcy is the process of declaring to creditors that you cannot repay your debts. If you do not see a way to do it in the near future, keep reading. The decision to declare bankruptcy, however, is a big step and should not be taken lightly. Some people will have alternatives to bankruptcy. Such as debt consolidation or entering negotiations with the creditors. But, if you have no alternatives other than bankruptcy, then you will need to follow the necessary steps to make this process work the best for you. There are people trained to handle these matters, and you should strongly consider consulting someone experienced in the process. Either way, you need to seriously consider if this is the right decision for you before you jump head first into the bankruptcy process.
What To Do First When Considering Bankruptcy
The first thing to do is to obtain as much information as you can about bankruptcy. If you are an individual, as opposed to a business, then you will mainly be dealing with chapter 7 and chapter 13 bankruptcy. Businesses and organizations will be directed towards other types of bankruptcies. It is imperative to learn the ins and outs of the two personal bankruptcy options before going much further. If bankruptcy ends up being a fitting alternative for you then you will need to know what your obligations are under each of the different types of bankruptcy options.
After taking the time to learn about bankruptcy, you should revisit the possibility of being able to use other options. Perhaps, being able to consolidate your debts into one large payment could be a good option for you. This could be a good option if you are simply not able to pay off your bills on time each month. Or, maybe you are overwhelmed with credit card debt. For the single person, lowering your standard of living may be a good practice for a year or two. You may also be surprised if you attempt to call your lenders and see if you can negotiate a payment structure. Make sure you consider your issue from many angles to see if there is a better alternative for you before deciding on bankruptcy.
Am I Eligible For Bankruptcy?
If bankruptcy still appears to be the way to go for you, then you will want to see if you are eligible. If you have a great deal of debt, but little income, then you may not qualify for chapter 13 bankruptcy. Conversely, if you have a good income and low debt, then you may not be eligible for chapter 7 bankruptcy. And, there is the possibility that you may not qualify for either. If you find yourself in this boat then you may have overlooked an alternative from the previous step.
Alternatives To Bankruptcy
Take into account all of your debts and your property if you do qualify. Are you prepared for the possibility of losing a home or car? These kinds of consideration differ from state to state so be sure you understand how this will work. Also, keep in mind that some debts, like child support, cannot be erased. BUT, they CAN be removed from your credit report. After getting all your information collected, you can begin the process of declaring for bankruptcy. It is recommended you do this with a lawyer or professional, and not to try to do it on your own. The process of declaring bankruptcy will not be suitable for all people, but for some it can be a blessing in disguise.
You can reach out to us and we can help you come up with a decision. Also, we can help you with debt consolidation or even credit repair if you decide to not go through with the bankruptcy.
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