29 Jan Should I file for Bankruptcy?
“Should I file bankruptcy?” is the most basic question you face when considering it. It is also a very complex question to answer.
Even before decidingwhich kind of bankruptcy case you will file, you need to know if you are in trouble enough to consider it.
If you are wondering whether filing for bankruptcyis right for you, then you are probably in over your head and at least need to learn more about Chapter 7 and Chapter 13.
You have three choices:
- Stay where you are (stuck in a hole)
- Borrow more to try to cover bills (dig a deeper hole)
- Take action to get out of debt (find a way out of the hole)
Whether or not you should file bankruptcy isn’t an easy answer to find, at least not on the internet! There are as many answers to this question as there are people asking it. The true answer is that it is an individual choice, and must be answered in the entire context of your life.
Bankruptcy isn’t governed by a number. There isn’t a debt limit or a magic number that will give this answer. One person may file because of $5,000 of debt, while another wouldn’t even though they owe $105,000.
Circumstances can change the answer to whether or not filing bankruptcy makes sense. An older person may make a different decision than a younger person, as might a sick person vs. a healthy person, or a person supporting a family vs. a single person.
Some good warning signs that you are in financial distress and ought to talk to a bankruptcy lawyer are:
- You have so much debt you don’t know how you will ever pay it off, let alone in a reasonable amount of time
- You are getting collection calls and/or lawsuits
- You are robbing Peter to pay Paul
- You are using your paycheck to make monthly payments on debt, but have to use more credit to buy groceries and gas
- You have no money saved for emergencies, like home or car repairs, medical problems or unexpected expenses
If any of these sound familiar, then it isbetter not to waitbefore you see a lawyer to get an informed review of your case. If you are asking the question whether or not bankruptcy is for you, even if you aren’t asking anyone other than yourself, then you shouldlook into it and get some answers.
Latest posts by Susanne Robicsek, North Carolina Bankruptcy Attorney (see all)
- New Bankruptcy Forms: Easier, Or More Problems? - January 20, 2016
- Forget about Bankruptcy - August 29, 2013
- After Chapter 7 Bankruptcy Discharge: Can You Take A 401k Loan? - March 13, 2013
- What Is A No Asset Bankruptcy Case? - February 13, 2013
- Bankruptcy Basics: When is Chapter 7 A Good Option? - January 13, 2013