How Do I Know if I Should File Bankruptcy?
Financial strife is overwhelming and stressful. If you’re like most people, you alternate between wanting to scream and wanting to hide under a rock. Bankruptcy may be the answer. We have laid out a simple analysis below to help you determine whether filing bankruptcy is appropriate for you.
It is always in your best interest to consult with a qualified bankruptcy attorney regarding your specific circumstances. The law firm of Geygan and Geygan, Ltd. helps people just like you.
The amount of your debt
If the amount of your unsecured debt is equal to or more than your annual income, it is unlikely that you will be able to pull yourself out of financial distress without the help of bankruptcy laws.
The amount of your credit card payments
If you are only able to make the minimum payments on your credit cards, it may take you forty years to get out of debt. And, this assumes that you are no longer using your cards.
If you can only make the minimum payments, you need help.
Law suits
If you are being sued for repayment of your debt, a lien may be placed on your home and your wages may be garnished. If you are being sued, it is unlikely that you will be able to pull yourself out of financial distress without the help of bankruptcy.
Immediately upon filing bankruptcy, a stay is issued and creditors must stop all debt collection practices. This means that all phone calls to you, your work place, neighbors, and relatives as well as all collection letters and lawsuits must immediately cease.
Types of personal bankruptcy
There are two types of personal bankruptcy. They are chapter 7 and chapter 13, named after their authorizing chapters in the bankruptcy code (law.) Chapter 7 is an elimination of debt and chapter 13 is a restructuring and repayment of debt.
There are specific requirements for each and a highly qualified bankruptcy attorney can help you to determine which is appropriate for you.
Where do I get help?
Consult with a qualified attorney. Bankruptcy is a very specialized area of law; be sure your attorney focuses his practice on bankruptcy. We focus our practice on bankruptcy law and you can reach us at 513-793-6555 or Thomasjr@geygan.com. We will gently walk you through the process and aggressively fight for your legal rights.
