If every month you are struggling, and barely chipping away at your debt, you may be feeling fed up with what seems like a never-ending situation. If your debt load has gotten to the point that you are dreaming of starting over, you may be asking yourself, "Is bankruptcy right for me?"
Below, you will find some valuable information to help you decide if bankruptcy is the solution that you have been looking for.
You Qualify for Filing – If you earn enough money to pay your creditors, you may not qualify for a
Chapter 7 bankruptcy. In order to determine your eligibility, you must pass the bankruptcy "means test" created under the 2005 bankruptcy reform law. If you earn less than the median income in North Carolina, you qualify, but if you earn more than you will have to file a
Chapter 13 instead.
Your Situation Won't Improve Any Time Soon – While you may be tapped out today, if you are starting a better paying job in the near future, or if you are about to receive a sizeable inheritance, and your hardship is only temporary, you may be better off waiting it out and paying your debts off when your financial situation changes.
The Bulk of Your Debt is Unsecured – A Chapter 7 bankruptcy discharges most types of unsecured debt such as credit cards, medical debt, and collection accounts, and personal loans. However, it does not discharge back child support, spousal support, recent tax debt, or student loans. If the bulk of your debt is dischargeable, you meet the requirements for this section.
You Don't Have Any Other Options – If you don't have any other ways to escape your financial nightmare; for instance, you don't have access to cash, or you don't foresee your financial situation changing anytime soon, then a Chapter 7 or Chapter 13 bankruptcy may be your best and only option.
Your Situation Will Improve if You File – Stressed out by money troubles? One of the greatest advantages of filing for bankruptcy is that it allows you to reboot and make lasting, positive changes to the way you handle your finances. The biggest problem? Many people don't file for bankruptcy when it could change their lives for the better.
Contact Schwilm Law Firm, PLLC
At Schwilm Law Firm, PLLC, we want to know: If you were able to discharge your qualifying debts, would you know what to do differently? Are you willing to make that commitment and start fresh?
If you are thinking about filing for bankruptcy and waving your obligations, we can show you how to rebuild your credit within two to three years of a bankruptcy discharge. If this sounds appealing to you, feel free to contact our
Charlotte bankruptcy firm at
(704) 750-1324 to arrange a