Bankruptcy: Is it the right option for you?
Financial distress is a difficult issue to cope with; however, there are ways to alleviate the stress it can cause. One option that may help to relieve financial stress is filing a bankruptcy. Deciding whether or not to file bankruptcy is a difficult task. There are several things to consider prior to filing a bankruptcy. Ask yourself the following questions. Are you currently unable to pay your bills? Are you behind on your mortgage? Are you behind on your vehicle payments? Have you been sued by your creditors? Are your wages being garnished or have your bank accounts been levied? If you answered yes to any of these questions then you may want to consider bankruptcy as an option.
Depending on your financial state you may be able to drastically reduce the amount of debt you pay to your creditors or even completely eliminate the amount you are required to pay back. This is decided by determining whether you meet the specifications for a Chapter 7 or a Chapter 13 bankruptcy. A Chapter 7 bankruptcy is a straight liquidation in which a typical debtor pays little or nothing to their creditors. A Chapter 13 is a reorganization of debt where you are responsible for paying at least a percentage of your debts back to your creditors. It is important to evaluate all factors to determine which chapter of bankruptcy, if any, is best suited for your situation.