Decide If Bankruptcy Is Right for You
by Attorney Albin RenauerIs bankruptcy a good idea or not? Here are some things to consider.
1. Learn about it. For individuals, there are two main kinds of bankruptcy:
2. Consider simpler alternatives. Things may not be as bad as you think. You may be "judgment proof" or you may have options you aren't aware of. See Alternatives to Bankruptcy.
3. Make sure you are you eligible. You may be prevented from filing for Chapter 7 bankruptcy if you have enough income to repay your debts in a Chapter 13 plan. (See Who Can File for Chapter 7 Bankruptcy?) Or you may not qualify for Chapter 13 bankruptcy if your debts are too high or your income too low. (See Are You Eligible for Chapter 13 Bankruptcy?)
4. Learn which debts won't be cancelled. Some debts, like child support obligations, cannot be wiped out in bankruptcy. Learn more in What Bankruptcy Can and Cannot Do.
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