Is Bankruptcy Right for Me?
Posted by Boss Law || 10-Jan-2017
Bankruptcy isn’t right for everyone. Those whose situation is right for bankruptcy not only can feel a sense of hope, but bankruptcy can help them get back on their feet after a serious financial struggle. Our St. Petersburg bankruptcy lawyers share some ways you can determine if bankruptcy will help you start a new chapter or if it just isn’t the right fit.
To help determine if bankruptcy is right for your situation, answer these questions:
“Am I even eligible?”
If you have enough money to pay your creditors, you may not even be able to file for bankruptcy. To determine if you have the means to pay your debts, the courts will assess the paperwork and how it compares to the “means test.”
“Do I foresee my situation improving shortly?”
If the answer to this question is “yes,” bankruptcy might not be right for you. Maybe you are living on the edge, but have recently received a better paying job, inheritance, gift, or something similar, your situation could be improved without the help of bankruptcy.
“Are most of my debts unsecured?”
Bankruptcy is a great solution for unsecured debts, such as credit card debt, medical bills, collection accounts and more. However, if your debt is largely constructed from student loans, tax debt, child or spousal support, or legal bills, your obligation to repay those debts remains, even if you file for bankruptcy.
“Do I understand the downside to filing for bankruptcy?”
Filing for bankruptcy isn’t going to make everything okay magically. There are implications to filing for bankruptcy that many people may not realize. For example, you may have to surrender certain properties and have bankruptcy listed on your credit report for 10 years. If you are willing to accept these in order to keep the benefits you’ll gain, bankruptcy could be right for you.
To learn more about bankruptcy or begin the bankruptcy process, contact Boss Law today and speak with a member of our team.