Making the decision to file for bankruptcy relief is a huge financial decision. It is important to consider if filing for Chapter 13 Bankruptcy is right for your circumstances. This requires you to evaluate your situation and, in many cases, discuss your needs with an attorney.
Considerations Prior to Filing for Bankruptcy
Prior to filing for bankruptcy, you need to consider the following:
1. If you will be able to pay the debt back without filing for bankruptcy.
2. If your creditors are suing you in order to collect the money you owe them.
3. If you are facing repossession or foreclosure on your property.
4. The amount of property that you actually own.
Is it Possible to Deal with Creditors without Bankruptcy?
Prior to filing for bankruptcy, you should consider the types of debt that you are trying to get rid of and if you will be able to deal with these debts without bankruptcy. If you are struggling with credit card debt, will you really be able to pay it off without bankruptcy? If not, then bankruptcy will be the obvious solution.
Are your Creditors Suing You?
If you have defaulted on your credit cards or loans, then your creditors may decide to sue you in order to collect the money that you owe. If you do not oppose this lawsuit then the creditor will likely obtain a default judgment, which will be filed against you. This means that they will be able to begin garnishing your wages or even placing a lien against the property that you own in order to enforce the judgment and also collect the money that is owed.
If you are currently being sued by your creditors, filing for bankruptcy will help to stop or at least delay this lawsuit because it places an automatic stay on virtually all collection actions. If you have a debt discharged during the Chapter 13 Bankruptcy, the lawsuit that is pending will also be dismissed.
If you are considering filing for bankruptcy, contact Brent Sorenson & Associates P.C. for help and information. They can provide you with insight to the process and if it is right for you. Keep this in mind if you are facing any type of financial issues.
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