Should I file bankruptcy?
Most people file bankruptcy to escape debt collectors. Debt Consolidation Trust offers a safe and sound alternative to bankruptcy. Surveys show that most people would rather not file for bankruptcy. By enrolling with Debt Consolidation Trust, our clients are able to avoid the problems associated with bankruptcy.
Several news stories have tackled this question about when a consumer should consider bankruptcy. In addition to the Newsweek piece that attracted lots of attention, today’s New York Times Cost of Living column by M.P. Dunleavey is entitled “Bankruptcy as a Step to Solvency.” The column tackles some of the concerns that people may weigh in deciding whether they need bankruptcy, and if so, whether now is the right time to file, including the effect of bankruptcy on credit, the ability to preserve assets, and other strategies such as dipping into retirement accounts to pay debts. Judge Bruce Markell recently came across a “rule of thumb” book that advised that people should consider bankruptcy if it would take more than five years to pay off your debts or you would have to use assets to do so. (Note: the Judge has no position/comment on the appropriateness/usefulness of such a rule). Many of our Credit Slips readers help clients answer this question about whether they need bankruptcy eve
Nobody can tell you whether or not bankruptcy will work for you. However, the Florida bankruptcy attorneys at Roberts Law Partners can help you decide whether to file based on your current financial picture. Some reasons to consider filing bankruptcy include inability to pay monthly minimums, impending foreclosures or property seizures due to non-payment, and/or inability to pay off debt due to adverse financial circumstances such as the death of a partner, a severe illness, or a lost job.
A person should file a bankruptcy if, and only if, he or she can’t pay bills as they come due or is about to lose property or have property attached by the Court. Very few people lose any property when they file bankruptcy. In Pennsylvania, you are allowed to keep $3,225 equity in a car, $10,775 in personal household goods, $20,200 in a home, and at least $1,000 in any property that you choose in a general exemption plus ½ of the unused portion of the home exemption. For married couples, filing jointly, these exemptions are doubled. In a Chapter 13, the property that can be kept is just about unlimited as the plan pays at least what a Chapter 7 would pay. Filing a bankruptcy is generally better than having a foreclosure on your credit record. A person will often be able to rebuild credit and buy a house within 2 years after a bankruptcy. A repossession can do more damage to your credit and it may take much longer to recover. Government regulations may forever keep you from financing a
