Who Should File for Bankruptcy?
Bankruptcy is a scary word for some people, but it should not be feared. It was established in order to help people in difficult situations and should be utilized if needed. If the help is there, why not accept it?
There are many different types of people that can benefit from bankruptcy, including:
- Someone who has obtained large medical bills due to an accident or illness.
- Someone who was laid off suddenly and had to take on major debt to pay bills and buy food.
- Someone who obtained a large amount of debt through a divorce.
- Anyone else who has overwhelming debt, which they have tried to dig their way out of with no success.
One of the major requirements for filing for Chapter 7 bankruptcy (which relives you of most, if not all, debt) is that you pass what is known as a ‘means test’. This will test your ability to pay off your debt within a reasonable amount of time, taking your total debt, income, and living expenses into consideration.
If you can’t repay your debt within a reasonable amount of time, then you will likely qualify for Chapter 7 bankruptcy. If you can, then you may be guided to apply for a Chapter 13 bankruptcy, which may still reduce your total debt and give you a manageable 3 to 5 year schedule to repay what is left.
If you are contemplating bankruptcy, contact the offices of Allmand and Lee at (214) 265-0123 to discuss your options. They have helped other good people through bad times and they can do the same for you, too.