This Garnerville bankruptcy law blog has spent a number of prior posts covering the types of bankruptcy an individual may choose to pursue if he or she is facing overwhelming debt. Chapter 13 bankruptcy and Chapter 7 bankruptcy both provide useful means of eliminating debt and starting an individual on a fresh financial path. However, before a person gets to the point of deciding which form of bankruptcy he or she should pursue, he or she may wish to investigate and ask him or herself a few important questions.
First, an individual may want to ask if he or she has any alternatives to filing for bankruptcy. Bankruptcy is not an easy process. It can require a person to relinquish important assets, such as a personal residence or car, for the sake of paying off creditors and starting over with a clean slate. If an individual has a way to pay off his debts without filing for bankruptcy, he or she may wish to seriously investigate those options.
Second, a person may need to ask if he or she is even eligible to apply for bankruptcy. Not every person who wants to pursue bankruptcy can qualify for it. Therefore, before engaging with the process, it is important that a person makes sure he or she can see it through with qualifying eligibility.
Finally, a prospective bankruptcy filer should learn if his or her debts will even be eliminated through the bankruptcy process. Not all debts can be forgiven in bankruptcy. As such, if a person files but does not have debts that can be forgiven, then his or her utilization of the process as a means to financial freedom may be ineffective.
Bankruptcy provides a great way for many people to get rid of their debts. However, it is not a process that one should enter capriciously. Those readers who require more information about whether bankruptcy could serve their needs should may wish to speak directly with bankruptcy lawyers in their areas.