Should I File For Bankruptcy?

Bankruptcy is not a failure, but a fresh start.  That is a common expression that you will hear bankruptcy attorneys’ state.  Clients always ask, “Should I file for bankruptcy?”  However, what if you wanted to explore some alternatives?  Not every debtor has to wind up filing for bankruptcy.  Why not try and work out a deal with your creditors?  Perhaps your debts are too extensive and no payment plan effort would fit the bill.  Maybe you do not have the time and effort to contact all of your creditors in an effort to get out of debt.  Besides, working out payment plans and then following through on those payment plans could be overly burdensome.

Some people are living pay check to pay check and still not really living well.  They may be surviving, but not thriving.  Further, that person is one problem away from not being able to make ends meet.  If you fall within that category, you should consider talking with a Chicago bankruptcy lawyer.  The lawyer can at least point you in the right direction with regard to your finances.  It may be that he will advise you to not file for bankruptcy.  This may be the result if your debts are purely non-dischargeable debts.  Those would be student loans, recent taxes, parking tickets and child support obligations just to name a few.

If you do decide to file, you will likely have more than one way to go.  This is commonly referred to as your bankruptcy options.  One such option is to file for Chapter 7 bankruptcy.  This is also known as the fresh start bankruptcy because the majority of debts are eliminated in a Chapter 7 bankruptcy case.  The other main option is to file for Chapter 13 bankruptcy.  This type of bankruptcy is often used to repay mortgage arrears as well as other debt.  The amount that you pay is determined by your income, expenses, assets and liabilities.

Whatever you decide to do, I do not recommend that you file bankruptcy yourself.  First, you have no idea how to handle a complex legal matter such as bankruptcy.  There is a Federal Code which governs Chapter 7 and Chapter 13 bankruptcy cases.  The Code is something that takes a learning curve.  You are not going to get it right on your first attempt.  Thus, since you are only filing one case, why not let an experienced attorney work the case for you?  With the right attorney, you can rest assured that you are not going to have unforeseen issues with your case.  That is my strongest recommendation with regard to filing for bankruptcy.