How To Know If Bankruptcy Is The Right Option

When you are overwhelmed with bills you cannot pay, you will need to seek help at some point from a professional. If you do not, you could end up losing everything you have, including your house and car. Seeking help from a bankruptcy lawyer is a great place to turn and does not obligate you to file but visiting a bankruptcy lawyer will help you determine if this is the right option for you. Here are some of the things the lawyer will talk to you about to help you make this decision.

Your Current Income Level

You might wonder why a bankruptcy lawyer asks you how much money you make, but there is a very good reason for this. The amount of money you make will tell the lawyer what branches of bankruptcy you qualify for. If you earn very little money, you will probably qualify for Chapter 7. If you make a lot of money, you may qualify for Chapter 13. Some people qualify for both options, and this all depends on the money the person makes.

Your Debts

The other important thing the lawyer will discuss is your debts. He or she will need to know exactly how much money you owe, and the lawyer will need to know who you owe the money to. The types of debts you have will help the lawyer determine which branch of bankruptcy to use, and it will also help him or her know whether bankruptcy would even help or not.

For example, if all of the debts you have are for back taxes, student loans, and child support, filing for bankruptcy might not offer a lot of relief for you. These are debts that you must repay in full.

If you owe money on credit cards, and this is the only type of debt you have, then filing for bankruptcy could provide you with a great deal of relief.

Your Assets

Taking a look at the things you own is another step the lawyer will take to see if you should file for bankruptcy. If you use Chapter 7, there is always a chance you could lose assets, while you probably would not lose any if you used Chapter 13.

There are so many different factors that can affect the decision to file or not, and there are also a lot of factors that affect which branch to use. Contact a law office today to talk to a lawyer like Greg Dunn Bankruptcy Attorney about your situation.