Is Bankruptcy Right for Me?

The first consideration when filing for bankruptcy is whether you are able to pay your bills. If you could pay your bills if you managed your money more carefully, then other options will likely be better-suited to your individual circumstances. Of course, not everyone is a financial expert. When you contact us, we can walk you through the steps of determining if you are legally-eligible to file for bankruptcy.

In order to file for bankruptcy under Chapter 7, you must not have completed a Chapter 7 bankruptcy within the past eight years or a Chapter 13 bankruptcy within the past six years (in most cases). In order to file under Chapter 13, you must not have completed a Chapter 7 bankruptcy within the past four years or a Chapter 13 bankruptcy within the past two years.

Not all debts are eligible to be forgiven (or “discharged”) in a bankruptcy. The most-common examples of non-dischargeable debts are alimony, child support and student loans. If most of your debts are not eligible for discharge, then filing for bankruptcy under Chapter 7 may not solve your financial problems. On the other hand, you may be able to restructure your non-dischargeable debts under Chapter 13 so that you can pay them off over time.

Even if you meet the other eligibility criteria, there are certain legal issues that can prevent you from being eligible to file for bankruptcy. For example, you will not be eligible for bankruptcy relief if:

• You had a bankruptcy case dismissed in the past six months because you violated a court order or the judge determined that your bankruptcy filing was fraudulent;
• You have improperly attempted to shield your assets from your creditors;
• You have amassed substantial debt by charging purchases of luxury items with no intent of paying your credit card bills;
• You have attempted to hide assets or income from your spouse during your divorce; or,
• You have lied about your income or debts on a relevant credit application.

Once the bankruptcy process is complete, certain debts will be discharged. Credit card bills, medical bills, car loans and other personal debts can all be erased through the bankruptcy process. Alimony, child support and student loans are not eligible for discharge in bankruptcy.