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Are You Torn About Whether or Not to File for Bankruptcy? Ask Yourself These Three Questions

Do you struggle with debts that, despite your best efforts to pay them off, just keep piling up? It might be time to think about filing for bankruptcy. Take into account the answers to these 3 questions as you decide. Then call The Law Offices of Paul Y. Lee at 951-755-1000 to speak with a bankruptcy attorney.

1. Which debts concern you the most?

It is crucial to think about the debts that are the most burdensome because this could influence the kind of bankruptcy you choose to declare. In terms of filing for bankruptcy, there are two basic options:

Chapter 7 bankruptcy is frequently the best option for people who are largely burdened by unsecured obligations, such as credit card debts, medical bills, payday loans, some back taxes, personal loans, and other debts that are not secured by any kind of collateral. If you are able to satisfy the means test, Chapter 7 bankruptcy will allow you to totally erase your debts.

Chapter 13 bankruptcy is the best option if you are more concerned about loans that are secured by property, such as your home or car, than unsecured loans. These obligations will be consolidated with any other unsecured debts you have under Chapter 13 bankruptcy, and you will be given a 3–5 year repayment schedule to follow. Any outstanding obligations will be forgiven at the conclusion of the plan.

2. Are you making a good living?

Because Chapter 7 is a means-tested bankruptcy, it is crucial to take your income into account when considering filing. This means that those who are regarded as high earners or who have a sizable amount of money left over each month after covering their necessary living expenditures are not eligible.

While having an expert bankruptcy lawyer go over the means test with you is the best way to determine if you qualify for Chapter 7 bankruptcy, you may get a general idea on your own by adding up all of your monthly living expenditures and deducting them from your monthly income. If your score is negative and you don’t lead a lavish lifestyle, you probably won’t fail the means test.

3. Have debt collectors begun to bother you?

It may be a very excellent sign to quit waiting and contact a bankruptcy attorney if you have already had bills sent into collections and collection agencies are now contacting you day and night. Why? Because all collection efforts must cease once you file for bankruptcy. This can offer much-needed relief from the annoyance of debt collectors.

Call The Law Offices of Paul Y. Lee at 951-755-1000 right away if you want to learn more about your bankruptcy alternatives.