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5 Questions to Ask Yourself If You are Considering Bankruptcy

Posted By Allmand Law Firm, PLLC || 16-Oct-2013


Deciding to file for bankruptcy is a major step toward financial freedom, that is, once you explored all of your options and thoroughly examined your situation. In getting an idea of whether filing is best for you, there are a few questions to think about that may put your circumstances into a better perspective.

  1. How will bankruptcy help if you file? Answering this may depend on personal goals and what you hope to achieve if you file. Remember, certain debts may not be eligible for discharge but it may help make other payment obligations easier to meet.

  2. How do you qualify? Do you know the qualifications for the chapter you want to file? Depending on the chapter, you may need to meet income guidelines when completing the means test to determine eligibility.

  3. Are you being sued? Have you recently received a lawsuit or have been served with a legal summons regarding your debt? The automatic stay in bankruptcy can stop legal proceedings against you. Some lawsuits may lead to a lien or wage garnishment if ignored.

  4. Are you facing possible repossession or foreclosure of your property? A Chapter 13 bankruptcy may help you get caught up on missed mortgage payments, help reduce what you owe on car loans or strip unsecured liens on the home.

  5. Do you know which chapter you should file? Chapter 7 helps eliminate qualifying unsecured debt such as medical bills, credit cards, and personal loans. Chapter 13 is a repayment plan based on your ability to make payments.

Filing either chapter may help you protect assets while getting the fresh start you need. Review your situation with a qualified Dallas bankruptcy attorney.


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