Bankruptcy may sound like a good idea, but it is not something you get involved with until you know exactly how it will impact your life.
While bankruptcy may make sense for some people, others find that they are better off with an alternative, such as debt consolidation.
If you are on the fence, if you don't know whether to move forward with bankruptcy, it is time to answer a few key questions. These include:
-- Are you familiar with the many types of bankruptcy, including Chapter 7 and Chapter 13?
-- What are the alternatives to bankruptcy that could work for you?
-- Are you eligible to file for the type of bankruptcy that you are most interested in?
-- What debts will be forgiven in bankruptcy? What debts will you still be responsible for?
-- What will happen to your home if you decide to file?
-- Are you going to lose some of your property?
-- What will happen to your retirement plans?
-- Are you familiar with the filing process, including how long it takes?
-- Will you consider Chapter 13 bankruptcy if you do not qualify for Chapter 7?
You will never know if bankruptcy makes sense for you until you answer these types of questions. The more answers you come up with the better understanding you will have of the bankruptcy process.
Some people find that bankruptcy is right for them, while others realize they need to put this off for the time being. If you want to file, you need to understand the ins and outs of the process.
Source: FindLaw, "Is Bankruptcy a Good Idea for You?," accessed Dec. 30, 2015