10 Things To Consider Before Filing For Bankruptcy

Things To Consider Before Filing For Bankruptcy

There are several reasons why someone might choose to file for bankruptcy. For some, bankruptcy may be the only way to receive a fresh start after accumulating too much debt.

For others, it may provide a way to escape crushing debt payments and get a clean slate.

How bankruptcy affects your credit score and whether you can keep your property depends on the type of bankruptcy you choose to file.

10 Questions To Ask Yourself Before Filing For Bankruptcy

10 Things To Consider Before Filing For Bankruptcy.

The following are the best 10 questions to ask yourself before you file for Bankruptcy.

1. Which Type Of Bankruptcy Is Right For Me?

It depends on your specific circumstances. Numerous factors such as monthly income, the type of debt you owe, and your desired outcome will determine what chapter of bankruptcy is best for you.

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Should you go for Lerner and Rowe bankruptcy Chapter 7 or Chapter 13? You will get all your answers in this post later.

2. Is Filing For Bankruptcy The Right Thing To Do?

In some cases, it may not be. For example, if you are collection proof because you have no assets that are eligible for seizure, you may be able to avoid bankruptcy altogether.

3. What Are The Benefits Of Bankruptcy?

Bankruptcy gives you a clean financial slate once the process is complete and the ability to “start fresh,” free from debt.

4. Are There Any Debts That Won’t Be Forgiven?

Bankruptcy generally wipes out all debt except for certain kinds of debt, like alimony, child support, student loan, or tax debt.

5. Does Filing For Bankruptcy Cost A Lot?

Filing For Bankruptcy does not cost a lot. For instance, Lerner and Rowe Law Group offer low fees and reasonable payment plans.

They understand how difficult your situation is and want to help you get a fresh start. For the cost of reasonable attorney fees, you can often wipe out your debt for pennies on the dollar and avoid wage garnishments.

6. How Long Does It Take To File For Bankruptcy?

Most Chapter 7 bankruptcy cases are complete after 6-12 months, while Chapter 13 cases can take up to five years. or more.

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However, you receive immediate relief from your creditors after filing your case. That means wage garnishments and foreclosure actions cease.

7.  Is There Anything That Would Make Me Ineligible For Bankruptcy?

Generally, any individual can file bankruptcy, however certain situations can affect when you can file a bankruptcy and what chapter you are eligible to file.

For example, if you previously filed a Chapter 7 bankruptcy and received a discharge, you must wait 8 years to file another Chapter 7.

With a high enough income, you might need to file a Chapter 13 bankruptcy rather than a Chapter 7.

Your best option is to discuss your specific circumstances with one of our experienced bankruptcy attorneys.

8.  Will My Credit Card Debt Disappear?

Most debts discharge in bankruptcy with the exception of debts specifically exempted from discharge under the bankruptcy code.

Debts incurred under the pretense of fraud or debts incurred with no intent to repay can be exempted from discharge.

9. Are My Retirement Accounts And Pension Safe?

Qualified retirement accounts such as IRAs, 401(k)s, profit-sharing plans, and defined-benefit plans are protected in both types of bankruptcy.

At Lerner and Lowe, their experienced Arizona bankruptcy attorneys will review your retirement accounts to ensure protection and recommend a course of action before filing a case if they determine a particular account is not protected.

10.  Will I Get To Keep My House, Car, And Other Assets?

Most people get to keep their house car and other personal assets as long as the bankruptcy case is properly planned before being filed.

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Aaron Stark is a financial advisor who helps people save for their future and make sound financial decisions. He’s passionate about helping people achieve their financial goals and believes that everyone should have the opportunity to retire with dignity.

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