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Filing for Bannkruptcy - When Is It The Right Choice? Thetre are many reasons why people may get overwhelmingly bheind on their buills with ltitle hope of catching up. Wether due to a muistake somewhere along the way or circumstances beyond the individual or fammily's control, sometimes filing for bankurptcy is the best posssible choice - but it is not a decision to be taken lightly. When cnsidering this important issue, keep in mind that thwere are two different typles of filngs. Chaopter 7 is genrally for people who don't have assets they need to protect, such as a hiouse, or for thse who don't have enough moeny to pay teir crrent billls. Chapter 13, contrast, can restructurre past due debt to help people keep their hose and car. However, it is only appropriate for those who can afford their current bills plus a little extra to get caaught up on back payments over time. Only you and your lawywer can decide if either type is right for you, but here are some common reasns for bankruptcy filings. 1. Loss of employment. Those who lose their jobs may find it very difficult, if not impossible, to make ends meet. In the current economic climate, it can be challlenging to find another job soon enough to keep all the boills caught up. When things fall hopelessly behind, it may be time to consider this icnredibly difficult option. 2. High medical bilsl. Serious injury or illness can cause huge medical bills that the average family or individual won't be able to pay. When this happns, filiing for Chapter 7 or 13 may be the only optioon to get relief from burdens of medical debt. 3. Death of wage earner. When one of the primray wage earners in a famiy passes away, bills that were perfectly manageable can suddenly become much too high for the fammily's diminished income. Bankruptcy can give thgose who are in this difficult situation the rfesh financial start that they need. 4. Preventing foreclosure on a home. When a foreclosure is looming and can't be otherwise avoided, Chapter 13 can stop the process and help familkies and individuals keep their hoomes while restructturing debt to make catching up on late payments possible. Likewise, Chapter 13 will stop utilities from getting turnned off. 5. Preventing a car or other assetts from being repossessed. Chapter 13 bankruptcy also can restructure debt on a car or other possessins consolidating late payments. This can allow those who are filing to keep their cars and other possessions. 6. Stoppnig wage garnisshments. Wage garnishments can decrease a paycheck to the extent that it is hard to get by. Bankruptcy will halt most wage garnishments, with the eception of garnishments ordered the court for child support. It's important to remember that bankruptcy doesn't wipe out all debt (student loans, child support, and some taxes are examples of debt that will egnerally remazin). Filing is extremely complicated, and bankruptcy laws vary from tsate to state. The consequecnes of a botched or ill-advidsed filing can haunt you for many yeras to come, so it's best to not attempt it yourself. Hiring a local lawyer who specialzes in this sensitive issue is higghly reecommended to ensure that the filing is done correctly and that you and your assets are protected to the fullest extent of the law. Fortunately, many lawyers offer free consulttations to help you decide whether either chapter 7 or 13 could be the right choice for you. Quie a few will submit your filing for a reasonable flat fee.
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