Bankruptcy is not for everyone. Not everyone can simply file for bankruptcy, as there are requirements and you may not qualify for bankruptcy. If you aren't sure if you can file for bankruptcy or if you have questions about the process, you should seek help and advice from an attorney to be sure. Some of the qualifications for a Chapter 7 bankruptcy are listed below to use as a guide.
Your Debts Outweigh Your Income
If you have more debt than income, you may qualify for bankruptcy. Just because you have a lot of debt, doesn't necessarily mean you can't afford your debt. You may simply need a budget counselor to better help you budget your income, or there may be things you can live without that can help you afford your debts, such as ditching cable or choosing a cheaper wireless plan or paying monthly instead. If, however, you have more debt than income, you may qualify for bankruptcy.
You Haven't Filed In The Last Eight Years
If you've filed for bankruptcy recently, you aren't going to be able to file again, unless the other bankruptcy was dismissed for some reason. A bankruptcy that was discharged means you cannot file again for bankruptcy for another eight years. If it's been over eight years, you may be able to file again depending on your financial situation.
However, bankruptcy should not be a way of life; it should be a way to help you get out of debt. It shouldn't be your every-eight-year ritual.
You Don't Have Any Assets
If you are in debt and don't have the income to pay the debts back, and you have no assets to help you get out of debt, bankruptcy may be right for you. If you have assets, these things may need to be sold in order to pay back your debts. If you have assets that you are paying on currently and cannot afford, these things may need to be turned back into the bank in order to pay back a portion of the debt.
If you aren't sure if you can file for bankruptcy, you should seek help from a professional bankruptcy attorney to see if you qualify and to see what type of bankruptcy you may qualify for, as there are different types of bankruptcy. Make an appointment today with a bankruptcy attorney to learn more about the process and how it can help you.