Should I file?

Should I file for Bankruptcy?

The decision to seek bankruptcy relief has never been either easy or simple.  Many factors can and do enter into the choice.  Having your case reviewed by an experienced attorney can allow you the peace of mind that comes with understanding the risks and benefits.  If bankruptcy is right for you having the right strategy and type of bankruptcy is also a critical choice.  The following is intended as a general review of typical issues.  For case specific advice please contact us for a free Consumer Consultation.

 

Benefits of filing the “Pros”

  • Taking control of your circumstances.
  • Stop creditor “noise”
  • Stop lawsuits
  • Stop garnishment and tax levies
  • Stop a Foreclosure Sale
  • Potentially discharge older income taxes
  • Potentially get rid of a second mortgage – [Chapter 13 only]
  • Potentially discharge or modify Divorce Judgment obligations – [Chapter 13 only]
  • Potentially “claw back” recent garnishments from a creditor
  • Extend the time you can stay in a foreclosure property

 

Some of the costs and risks: the “Cons”

  • A period of lower credit score
  • Risk of having some property “liquidated” for creditor
  • Pre-Bankruptcy payments or transfers to family/friends reversed.

 

Some of the Myths about Bankruptcy

  • Will I lose my house?
  • Can I get future student loans?
  • Will I have “bad credit” for 10 years?
  • Doing a bankruptcy is too expensive
  • Do both Husband and Wife have to file?
  • All Student Loans cannot be discharged?
  • Filing bankruptcy will get me fired from my job?
  • Bankruptcy is the “last resort” right?
  • I have to have an attorney to file a bankruptcy?
  • I will have to pay tax on the debt I discharged?
  • My bankruptcy will mess up my spouse’s credit rating?
  • Failing to pay a debt can put me in jail?
  • What about the “Social Stigma” if I file?