Is Filing for Bankruptcy a Good Option for You?

 Posted on January 09, 2023 in Bankruptcy

Every year, hundreds of thousands of Americans choose to file for personal bankruptcy. Although a stigma was traditionally associated with seeking bankruptcy relief, the Great Recession of 2008 taught the public that everyone, no matter how hard-working and responsible, can find themselves in need of assistance through no fault of their own.

If you are struggling to pay back your debts on time, you are not alone. Thankfully, there are ways to get your finances back on track. If you are thinking about filing for bankruptcy, this opportunity may or may not be a great option for you. Whether filing for bankruptcy makes good sense depends upon the unique nature of your circumstances.

Why and How Are You Struggling?

Chapter 7 bankruptcy helps low-income filers to rid themselves of certain unsecured debts, like medical bills and credit card balances. Chapter 13 bankruptcy helps filers to reorganize their debts so that repaying what they owe becomes a manageable process.

If you do not earn much money and many of your debts can be discharged via a Chapter 7 filing, this might be a good option for you. If you are trying to save your home from foreclosure or you earn enough income to make a manageable monthly payment on all of your debts combined, Chapter 13 bankruptcy may fit your needs.

But if you do not earn much income and the bills you are behind on are secured debts – like a mortgage or car loan – an alternative to bankruptcy is likely to be more useful to you.

How Is Your Credit Score?

If your credit score is already low or relatively low, you have little to lose by the temporary damage that filing for bankruptcy will do to your credit history. Taking this proactive step to address your debt could even appear to potential lenders as a responsible choice over time, as long as you make good financial choices from now on. But if your credit score is very good or excellent and you are only struggling with one or two debts, seeking a loan modification, refinancing, or exploring other bankruptcy alternatives might be better options.

Contact a Knowledgeable San Antonio Bankruptcy Lawyer for More Information

You do not need to be sure that filing for bankruptcy is the best way forward to explore your legal options. The reputable San Antonio, TX bankruptcy lawyers at Law Offices of Chance M. McGhee can answer your questions and provide you with personalized assistance in a risk-free, confidential, no-cost consultation session. You can schedule your session today by submitting a contact form on our website or by calling us at 210-342-3400. Once you have made an informed decision about how you would like to move forward, we can provide you with all the legal support you need.

Source:

https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics