Questions to ask when considering bankruptcy

On Behalf of | Feb 1, 2018 | personal bankruptcy |

Many Illinois and Indiana residents find themselves living paycheck-to-paycheck, one unexpected situation away from financial disaster. Those who wind up facing unexpected and overwhelming debt can find it hard to pay their rent or mortgage, keep the lights and water on and even put food on the table. In desperation, these individuals may turn to family and friends or something like a payday loan, for assistance. However, when these resources dry up, these individuals can still be left struggling.

Although many Americans believe that with hard work they can dig themselves out of such a hole, the truth of the matter is that sometimes the financial situation is too serious to overcome. Even if it can, it may not be worth the time in effort. Instead, these individuals may be able to obtain quicker debt relief and a fresh financial start by pursuing personal bankruptcy. But how does one know if bankruptcy is right for him or her?

There are a number of questions one must ask before moving forward with bankruptcy, whether Chapter 7 or Chapter 13. For example, which type of bankruptcy does one qualify for and does that type of bankruptcy eliminate the debts that he or she is looking to shed? Also, one must consider how the assets that are most important to them will be handled in bankruptcy. Will he or she be able to keep their home, car or personal items of sentimental value?

Will bankruptcy negatively impact one’s retirement accounts, such as pension plans and 401(k)s? Will any co-signers still be stuck with debt even if it is forgiven for the individual seeking bankruptcy? These are all important questions that should be answered in order to protect one’s financial future, emotional well-being and family relationships and friendships.

Competently moving forward with bankruptcy requires careful planning with a full understanding of one’s financial situation as well as an eye on the future. Skilled bankruptcy attorneys like those at our firm stand ready to help struggling individuals secure the fresh financial start they deserve.

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