If you’re overwhelmed by debt, you might be wondering if there’s any relief. Do you have enough debt to file bankruptcy? Are there other options? A bankruptcy is a serious legal issue. Before you decide to go through with a bankruptcy, make sure it makes sense for your situation.
Options to Get Relief From Debt
Under the bankruptcy regulations, consumers have two options. Chapter 7 is debt relief where your debts are discharged. You can usually keep your car, pension, a home and personal property, provided you can continue to make payments on your mortgage or car loan. Chapter 13 bankruptcy is a reorganization of your debts. You develop a plan to repay your debts over three to five years. Instead of bankruptcy, you may be able to negotiate with creditors to find a solution instead of bankruptcy.
Will Bankruptcy Eliminate Your Debts?
Certain debts cannot be discharged under a bankruptcy. Child support and alimony, student loans, priority tax debts and obligations out of a DUI charge cannot be included in a bankruptcy. Talking to a bankruptcy attorney about your debts before filing for bankruptcy can help you understand whether bankruptcy is a good option for you.
How Do You Qualify For Bankruptcy?
Bankruptcy doesn’t have a debt minimum. Chapter 13 does have a debt maximum. If you have too much debt, you may not qualify for Chapter 13. Although the amount of debt you have is important to filing for bankruptcy, there are other considerations. You should look at whether you can pay your debts outside of a bankruptcy. You should look at what type of debt you have. And you should consider the facts of your situation.
When Should You Consider Bankruptcy?
When you can’t pay your debts, it might be worth considering bankruptcy. Bankruptcy offers protections from creditors who are suing you or garnishing your wages. But you should also keep in mind that bankruptcy relief is limited. If you don’t have a lot of debt that can be discharged under the bankruptcy, you may want to save the filing until you really need it.
Bankruptcy law is complex. Although money is tight already if you’re considering bankruptcy, it is a good idea to get help from an experienced bankruptcy lawyer. Going through the process with an advocate will help ensure that you are getting the most from your bankruptcy and will protect your rights. Contact a lawyer to give you information about the best steps for your situation.