Bankruptcy is a legal process that provides relief to many individuals who can no longer pay their debts. Before you can go any further, you will need to consider if you are a candidate for bankruptcy filing. There are many factors to consider. Here is a list of possible signs that a bankruptcy might be right for you.

You know it is time to file bankruptcy when:

  • You ask to pay for fast food with a credit card
  • Thieves give your card back to you cut into pieces
  • Your child thinks your real name is “declined”
  • You don’t go out before you check which credit card is “working”
  • Your friends and relatives simultaneously change their phone numbers
  • You have to scrape together change from your couch seats to ....

If you found any of the foregoing humorous, good! Maintaining your sense of humor is an essential survival skill. Most consumer bankruptcies are a essentially a matter of filing the right forms and showing up. However, I do not recommend that you file bankruptcy without consulting with an attorney. This is money well spent, and even if your case seems simple, the advice you will receive from a professional will help you move through the system smoothly and with some certainty.

Which Bankruptcy Chapter is appropriate for you will be based on an analysis of your financial situation: how much and who you owe, what assets you have and want to keep, what your basic expenses are and how much income you have.

If you can, you will want to choose Chapter 7 for a complete discharge of all your debts in bankruptcy. most of those filing for consumer bankruptcy find that they can get most, if not all, debts wiped out, while keeping most, if not all, of their assets.

If you have non-exempt assets that you want to keep and/or a mortgage in arrears or in foreclosure, nagging IRS problems that just won’t go away, or other secured debts which are in arrears, you might need to seek a Chapter 13 repayment plan to deal with in order to keep the secured assets.

Businesses have available to them protection under Chapter 11, which is a way for them to negotiate with creditors while still operating their business. The goal is reorganization instead of completely causing the business to close.


LEGAL DISCLAIMER: The information on my website is intended as a general discussion of legal issues and not as a statement of fact, legal advice or a legal opinion. No attorney-client relationship is created by information provided herein. Do not act or rely upon information in this communication without seeking the advice of an attorney licensed to practice in your state.

This Web site is an advertisement by the Law Offices of Robin L. Bodiford, P.A., a debt relief agency helping people file for bankruptcy relief under the bankruptcy code.

The Law Offices of Robin L. Bodiford, P.A., is a Federally Designated Debt Relief Agency under the Bankruptcy Code. We assist consumers in need of bankruptcy relief and have been doing so since 1995.

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