Unforeseen circumstances such as job loss, divorce, disability, and natural disaster leave millions of individuals within the US unable to pay their debts. An inability to pay debts because of unforeseen and unpreventable circumstances is nothing to be ashamed of and help does exist. Bankruptcy is designed to help individuals in significant debt resolve their debts and settle with creditors. Many people finding themselves in significant debt often pose the question, “Do I qualify for bankruptcy?”. Each of the 6 types of bankruptcy have their own eligibility requirements but the general definition for eligibility is when debt payments and reasonable minimal living expenses surpass an individual’s income and make full debt repayment inconceivable. There are millions of Americans who technically quality for bankruptcy but other options are available to many of those individuals.
Qualifying for bankruptcy does not necessarily mean that filing is necessary or in an individual’s best interest. Learning about possible repayment options and assistance can help in the decision of whether or not to file for bankruptcy. Although many resources exist for individuals to learn more about their options, consulting an experienced bankruptcy attorney can be and often is the best way to determine if bankruptcy is a good option for an individual’s situation. Many options exist for debtors and choosing the right one will have significant effect on future finances and debt repayment.
Many individuals who qualify for bankruptcy actually qualify for more than one of the 6 types. Determining which type of bankruptcy will best satisfy that individuals specific needs is as important as the decision to file if not more so. For example, although chapter 13 filings can leave a bankruptcy filer retaining almost all their property, it can 3 to 5 years to be discharged from chapter 13 bankruptcy as opposed to as little as 60 to 90 days with chapter 7 filings. Because each situation and every individual is different, consulting an attorney is often necessary in making an informed and intelligent decision about filing bankruptcy.
If you live in the Colorado area, are considering bankruptcy, and would like to learn more about your options, speak with someone here that the Norton Law Offices to get the help and advice you need to make an informed filing decision.
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