Is Bankruptcy Right for YOU?!?!?!?!?!?
Is bankruptcy right for you? There are many things that go into determining if bankruptcy is the right choice for your particular financial situation. The very first consideration is, are there any alternatives to bankruptcy. Many times you will be limited by your resources and finances as to which alternatives to bankruptcy you can take advantage of, but most of them have to do with you paying a large portion or all of the whole amount of your debt. These include consolidating debt or attempting to work out a debt. There are significant drawbacks to either one of these approaches, consolidation of debt simply moves all your debts from more than one location or back to one lender, nothing more. Workouts have negative consequences when it comes to taxes, if you have a $50,000 credit card and settle it with the credit card company for $10,000, you will be issued a 1099 to the IRS stating that you have made $40,000 cash that year and will be taxed by the IRS accordingly. But for the sake of this blog post, let’s assume that you have chosen not to take that route.
The first thing to consider when she decided to file bankruptcy, is which chapter under the bankruptcy code will you be filing under. Will you be filing a Chapter 7 bankruptcy or Chapter 13 bankruptcy, which are the two most common bankruptcy is used by the average consumer. Chapter 7 bankruptcy otherwise known as liquidation bankruptcy are what most people filing bankruptcy will be using. Chapter 13 bankruptcy is for those people who make too much money a year to file Chapter 7 bankruptcy, are behind on secured loans such as mortgages and other loans in which to keep that property, or they have too much money or assets that cannot be exempted in chapter 7 bankruptcy and wish to retain this property.
So once you’ve determined if your particular situation calls for a chapter 7 bankruptcy or a chapter 13 bankruptcy, you can determine if bankruptcy is the right choice for you. Things to consider when you’re deciding on filing bankruptcy are: the amount of debt you are in, is the debt dischargeable in bankruptcy, drive property securing a debt and wish to keep the property, are you behind on your mortgage, are you behind on your car loan, how much credit card debt do you have, how much unsecured debt do you have and many times how many medical bills to doctors and hospitals do you have. When you have a firm grasp on your debt and which debts are secured or unsecured, you basically have all the information needed to determine if filing bankruptcy is the right choice for you.
In this video I describe in detail a number of the factors which will help you determine if filing Chapter 7 bankruptcy or filing Chapter 13 bankruptcy is the right choice for you in your particular financial situation.
To schedule a free consultation visit our site: https://www.botelholawgroup.com/
Joseph F. Botelho, Esq.
BOTELHO LAW GROUP
Attorneys At Law
901 Eastern Ave. Unit 2
Fall River, MA 02723