While there are several different types of bankruptcy and even more reasons that you might be considering filing; there's one question that's more important than all the rest - is bankruptcy right for you?
Bankruptcy is right for you if...
Your debts are dischargeable
A Chapter 7 bankruptcy can wipe your slate clean of debt. While this might sound like exactly what you're looking for, remember that there are several kinds of debt that can't be dismissed by bankruptcy, such as
- Overdue child support and alimony
- Student loans that were due fewer than seven years ago
- Court-ordered restitution
- Income taxes less than three years past due
- Court judgments against you for injuries or death arising from your intoxicated driving
There are also several other kinds of debt that a judge can rule are not dischargeable if the creditor appears in bankruptcy court and objects.
You want to repay your debts, but you just can't keep up
Unlike Chapter 7, under Chapter 13 bankruptcy you still owe your debt. However, you get a break from debt collection agencies and interest while you reimburse your creditors on a payment plan.
This is a good option if you're in a stable enough situation to repay your debts and you don't want to give up certain property or possessions to do so.
You're not making any headway on your credit card debt
Most people know that having a credit card open can be a useful way to build good credit. However, paying only the minimum amount due month after month or using one credit card to pay another doesn't do anything to improve your credit score and can actually hurt you by making you appear irresponsible to potential lenders.
Add the mounting interest to your declining credit and credit card debt can easily be a precursor to bankruptcy.
You are receiving legitimate calls from debt collection agencies
Remember that you have rights under the law if you're contacted by a debt collection agency or agencies. However, if you've determined that their claims are legitimate and you can't pay, you are a prime candidate for bankruptcy.
Even if your debt is legitimate, it doesn't mean debt collection agencies can harass you. Contact James Eason online or at (314) 932-1066 if you're considering filing for bankruptcy or you're being harassed by a debt collection agency.