Is Bankruptcy Right for Me?
Make the Right Choice with a Chicago Bankruptcy Attorney’s Help
Filing for bankruptcy is more than a financial decision. It is often emotionally charged, and it is a personal choice you will need to make for yourself. Without an intimate understanding of your specific financial situation, it is impossible to say whether bankruptcy may be right for you. However, there are several key points you can consider to help you make this important decision. As a Chicago bankruptcy attorney with more than a decade of experience and hundreds of cases handled, Iana Trifonova can offer guidance related to your unique situation and preferences.
Call Trifonova Law, P.C. at (877) 544-3394 for a confidential bankruptcy consultation.
Helpful Tips in Determining Whether to File for Bankruptcy
If you are in dire financial straits and considering bankruptcy, consider the following:
- Will you pass the means test and qualify under Chapter 7, or is Chapter 13 the right approach? To qualify under Chapter 7 of the U.S. Bankruptcy Code for a liquidation of assets and debt discharge, you must pass the means test. This means that your disposable income must not exceed a certain amount. If it exceeds that amount, you may need to under Chapter 13 to reorganize and repay your debt over a 3 to 5 year period.
- What will happen once you file? As soon as you file your bankruptcy petition, an automatic stay will be placed on all debt collection efforts against you. This includes foreclosure proceedings, creditor calls, lawsuits, repossession, and the like. This can offer a tremendous benefit in the face of overwhelming debt.
- Is your financial situation likely to improve anytime in the near future? If you are about to get a higher paying job, are set to receive a gift or inheritance, or otherwise have knowledge that this is a temporary situation, you may wish to ride it out and avoid the negative impact bankruptcy will have on your credit. If your situation shows no sign of changing anytime soon, bankruptcy may be the right option to help you get a fresh start.
- Is most of your debt unsecured? Bankruptcy will only affect unsecured debt, like credit cards and medical bills. Chapter 7 bankruptcy will not discharge student loans, recent tax debt, spousal support, and child support. It is important to consider what impact bankruptcy will have on your debt.
- Do you understand the negative impact bankruptcy will have on your credit report? Chapter 7 bankruptcy will remain on your credit for 10 years. Chapter 13 bankruptcy will remain on your credit for 7 years. This may be a small price to pay, however, for the elimination of your debt and a second chance.
If you are considering bankruptcy, there is no substitute to reviewing the matter with a qualified Chicago bankruptcy lawyer. Call us today at (877) 544-3394!