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Reasons To File For Personal Bankruptcy

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When you are struggling with consumer debt, it can be difficult to know when you should start to seriously consider filing for personal bankruptcy. You might be wondering if you have alternate options, like debt settlement or non-bankruptcy workouts to reach an agreement with a creditor about your debt without having to go through the bankruptcy process. If you have questions about whether bankruptcy is the right decision for you, or if you want to learn more about debt settlement options and forms of non-bankruptcy workouts, you should get in touch with a West Palm Beach bankruptcy attorney at Kelley, Fulton, Kaplan & Eller. Our lawyers routinely assist clients with debt settlements, non-bankruptcy workouts, and consumer bankruptcy. Accordingly, we can assess your circumstances and discuss options that may be available to you.

In the meantime, the following are some of the common signs that bankruptcy could be the best option for you.

You Have Already Gone through a Non-Bankruptcy Workout or Debt Settlement

 Certainly, not everyone who files for personal bankruptcy will first go through a debt settlement process or a non-bankruptcy workout. However, if you have already reached a settlement with one creditor and you are behind in payments again with that creditor or with another series of creditors, filing for personal bankruptcy could be your best option. If you file for Chapter 7 bankruptcy, you may be eligible to have those debts discharged, or if you file for Chapter 13 bankruptcy, you will have an opportunity to reorganize your debts and to get caught up on payments with various creditors.

You Need to Stop a Foreclosure 

If your home is currently going into foreclosure and you want to stop the foreclosure and catch up on mortgage payments, it may certainly be the right time to file for bankruptcy if you qualify for a reorganization bankruptcy. Most consumers will file for Chapter 13 bankruptcy, but if your debts are too high to qualify, you may still qualify for Chapter 11 bankruptcy. If you are at risk of losing your home but you earn an income and can qualify for Chapter 13 or Chapter 11 bankruptcy, you should speak with a lawyer about getting started on your filing.

You Currently Qualify for the Type of Bankruptcy for Which You Want to File

 In order to qualify for personal bankruptcy, you must meet certain requirements. To be clear, individuals will not typically qualify for both liquidation and reorganization bankruptcy, but rather may qualify for one or the other based on their current financial circumstances. If you want to file for Chapter 7 bankruptcy, for example, and you know you will soon be earning a higher salary, now is likely the better time to file if you qualify for this type of bankruptcy. Differently, if you suspect you could lose your job in the future but want to qualify for Chapter 13 bankruptcy, you might want to discuss filing options with a bankruptcy attorney on the sooner side.

Contact a West Palm Beach Bankruptcy Lawyer

 If you are struggling with debt, bankruptcy could be the right solution for you. One of the experienced West Palm Beach personal bankruptcy attorneys at Kelley, Fulton, Kaplan & Eller can speak with you today about your case.

Sources:

law.cornell.edu/uscode/text/11

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