Is Bankruptcy For Me?
Going through bankruptcy is a tedious and very disturbing process. It involves a lot of work, more than what you’ve previously imagined and it can have a lasting effect on your life and even your relationships.
Chapter 7 Bankruptcy Information
That is why it is important to make sure that when you actually file for bankruptcy, it is your ONLY remaining option. Based on Erica Sandberg’s 7-point checklist, here are a few tips to help you decide.
- File for bankruptcy, only if you are NOT capable of paying for your debts. You cannot file for bankruptcy if you just want to escape from your liabilities. It does not work that way. And when the court finds out that you have been deceitful, especially in declaring your remaining assets, you will lose the protection offered by bankruptcy and you still end-up losing your properties.
- If most of your debts are unsecured, bankruptcy is a good option. There is such a thing as “secured” debts wherein creditors are secured. Secured debts have collateral such as your car, you house or some other property, which the creditor can seize if you are not able to pay. Those kinds of debts are not cleared by filing for bankruptcy. If most of your debts are secured, there’s no point filing, as these are not covered by bankruptcy. Unsecured debts include credit card and medical bills, among others.
- You have no better options. Before you file for bankruptcy, you are required to attend credit counseling. During which a counselor will discuss other options with you. These counselors are also able to contact companies and convince them to lower their interest rates and offer debt management plans that DO help you get out of debt.
- You understand the consequences and you know that this will be better than if you do not file for bankruptcy. In bankruptcy, you have to go through many difficulties before you are finally FREE from your debts. It is a tough process where you need to deal with many papers and even when you are bankrupt, you are still required to pay for some fees: service fee for a lawyer, Debtor Education Courses, among others. You have to prepare yourself to face those kinds of stress and be sure that you will be able to handle them.
Remember that these are mere suggestions. There are professionals that can help you with your decision. The credit counselor can offer you the best help in finally deciding on whether to file for bankruptcy. What you need to remember is that when you are in deep debt. Bankruptcy is not your only option.
You actually have other options that you need to explore. I understand that falling into deep debt or even facing lawsuits are very serious matters. But be careful not to jump into thoughtless decisions. Do not get too agitated in immediately deciding to file for bankruptcy when you have not even tried to find solutions. Bankruptcy is not easy. It takes an enormous amount of time and effort. If you don’t have to go through that kind of pressure, then DON’T.
