Should I file for bankruptcy?

Whether to file for bankruptcy is a very personal decision. Some people do not have any assets over and above what the law allows them to keep, even if they do not pay their creditors. If this is true of you, then you don’t need a bankruptcy in order to protect your assets. Some people find it helpful to file a bankruptcy case anyway, because their financial situation is causing them emotional distress or depression, or because they would like to free themselves of debt now and have their income and assets to themselves in the future. Some people may find that a bankruptcy is worth filing, even if they do lose some of their assets.

This series of questions is intend to help focus your thought process and tries to help you decide if bankruptcy is appropriate for you.

If some of the following apply to you, you might consider bankruptcy:

Your wages have been garnished or your bank account has been attached.

Most of your debts are unsecured debts like credit card bills or doctor’s bills, etc.

Your total debt, not including your a car or house loan, is more than you could pay, even over five or more years.

Collection agencies are calling you at home.

Your payments are behind on more than one bill.

There are lawsuits pending against you.

You have high medical bills not covered by insurance.

You owe income taxes that you are unable to currently pay.

You have few assets.

You have little or no savings.

You have had property repossessed (such as a car).

People who have had their wages garnished can especially benefit from a bankruptcy because the bankruptcy will stop the garnishment and may even help you get some of the garnished money back.

Recent changes to the Bankruptcy code makes it more difficult and complicated to file for bankruptcy and to be freed of past debts. You should seek advice of competent bankruptcy counsel before deciding whether to file for bankruptcy.

Frequently Asked Questions General Concepts

1. What are the main purposes of bankruptcy?

2. What are the different kinds of bankruptcy?

3. What is the difference between chapter 7 and chapter 13?

4. Does a debtor have to, qualify, for bankruptcy? How will I know if I am eligible?

5. How does bankruptcy help me in the short run?

6. What is a discharge?

7. Do all debts get discharged?

8. How much does it cost to file bankruptcy?

 Bankruptcy Process

1. If I decide to file for bankruptcy, what do I have to do before I file?

2. What documents do I need to file in a chapter 7 case?

3. What will happen in my chapter 7 case after I file all these documents?

4. Are there additional documents and other requirements in a chapter 13 case? What is required in the chapter 13 plan?

5. Must I produce tax returns before and after my bankruptcy?

6. Do all creditors have to be listed on bankruptcy schedules?

7. What should I do if I discover that I forgot to list a creditor in their bankruptcy schedules?

8. What should I do if a creditor demands payment of a debt after my case is filed?

9. Is there anything I should know about the timing of my case?

More Details on the Bankruptcy Process

1. How much property can I keep after filing?

2. What is the difference between secured creditors and unsecured creditors?

3. Does a bankruptcy case automatically remove liens, such as mortgages, against a debtor’s property?

4. How does the automatic stay work, to stop foreclosures, repossessions or other collection efforts from taking place?

5. What must I do to prevent foreclosures and repossessions? 6. How does a chapter 13 case help me with my secured debts?

7. What can be done if a debtor falls behind in payments after filing a chapter 13 case?

8. What is a reaffirmation agreement and how does it work?

9. Can a debtor make payments on a discharged debt without a reaffirmation agreement?

10. Can I obtain bankruptcy protection again if have filed a bankruptcy in the past and am now falling behind in payments again?

The End of Your Bankruptcy Case

1. Once a chapter 7 or chapter 13 case is completed, are there other requirements before a debtor receives a discharge?

2. How do I know when my bankruptcy case is completed, and I am no longer in bankruptcy?

Bankruptcy and Your Future Relationship with Credit

1. How does bankruptcy affect my credit rating?

2. What can debtors do to reestablish their credit after filing bankruptcy?

3. How can debtors obtain a copy of their credit reports and correct any errors?