Nobody likes opening their mail (or inbox) and seeing a ton of bills. But for some people, bills evoke more than dislike: they cause actual pit-of-the-stomach, heart-thumping dread. The reason is simple — they are unable to pay. Regardless of whether the reason is financial carelessness or having been through some kind of economic disaster, if you’re in a situation where you see no end to your financial trouble then you are probably considering filing for bankruptcy. The question is, how can you tell whether it’s your best option?

The first thing you need to know is that there are plenty of highly qualified people who can help you come to the conclusion and action that’s right for you, including the skilled attorneys at our law firm. Though bankruptcy is an excellent vehicle for some people with debt, it is not the only way to find relief. Here’s what you need to know.

• Not every debt is dischargeable. Though credit card debt and medical debt can be erased in a bankruptcy, you will still be liable for alimony, child support, and student loans. Further, if you file for a Chapter 7 bankruptcy and some of your loans have to do with secured debts such as your home, keep in mind that you are probably going to have to sell off some of your assets in order to hold onto them – or face losing them.
• You can’t cordon off some of your assets as though they don’t count. If you have a pension or life insurance plan, a 401K or other types of savings that you have been hesitant about cashing out, a bankruptcy court is not going to allow you to continue doing so. You’re going to have to end up making some sacrifices.
• There are different types of bankruptcy. While Chapter 7 means that most of your debts will be discharged but you have to get rid of assets, Chapter 13 gives you more time to pay off your debts and might lower them or the interest rate that you are paying. Many times a debtor will not qualify for Chapter 7 because their income is too high.

There are other options, outside of bankruptcy, that might be a better fit for you. If your biggest problem with your debt is the calls you’re getting from creditors, you can put a stop to that under the terms of the Fair Debt Collection Practices Act, which has established limits on the times and ways that debt collectors can communicate with you, on what they can say and even where they can call you. You can also undergo credit counseling to help you figure out how to deal with your debt, or you might consider debt consolidation or settlement.

For assistance in finding the best way to deal with your situation, contact us today. We have the experience and knowledge you need.