Who is Good Candidate for Bankruptcy?
Many debtors considering bankruptcy are unsure of whether they are a good candidate for discharging or repaying their debts using bankruptcy.
Below are four signs that you may be the perfect candidate for bankruptcy:
- If you were to repay your debts outside of bankruptcy and it would take you more than five years to do so then you may be a good candidate for bankruptcy. Under Chapter 13 bankruptcy a debtor repays their debts in 3 to 5 years and whatever unsecured debt is left over after the end of the repayment term is then discharged. This is the case because 5 years is a reasonable amount of time to repay debt, anything beyond that is excessive.
- Your income is not enough to cover your everyday expenses and your debts. Debtors whose income is too little to pay their debts and those who have lost their jobs are very good candidates for bankruptcy. By discharging their debts in bankruptcy they can free up more of their income for the important things in life.
- You have assets that you want to protect from creditors. If you're a debtor who has a home, car, retirement account or other assets which you want to protect from creditors, then you may be a good candidate for bankruptcy. Bankruptcy is designed to protect your assets so that you can get a fresh financial start after bankruptcy.
- You are facing legal actions by creditors.
- If you're facing lawsuits, wage garnishments and bank levies, then filing bankruptcy could be the right choice for you. Bankruptcy's automatic stay will stop all legal actions against you as soon as you file.
If you are, you may need to set up a consultation with a bankruptcy attorney. If you would like, you can schedule a free consultation by giving us a call or filling out our contact form