Are you struggling to pay your bills and considering bankruptcy as a way to do it? If so, you're likely wondering if this legal process makes sense for you. Here are some things to consider about your debts when deciding to use bankruptcy.
How Much Debt Do You Have?
One of the first things you should be asking yourself is how much debt you have. That is because bankruptcy is not something that you do when you have one or two bills that you're struggling to pay.
Bankruptcy is a lawful way to help get out of debt. There are different types of bankruptcy that you can file. For the everyday person, chapter 7 or chapter 13 bankruptcy can be filed. Depending on your debt and your income, you may qualify for chapter 7 or chapter 13. Chapter 7 is typically for someone that doesn't have any money at all to pay back their debts, and their debts are usually fairly low.
When harm visits you, there are many remedies. For crimes, the criminal courts will have their say. If the harmful action is not classified as a crime, victims can take action in civil court. Victims may seek justice using small claims court or in civil (or personal injury) court. It's easy to see why accident victims are sometimes confused about what steps to take to be paid compensation. For some help on these matters, read on and find out which court is best for your circumstances – small claims court or civil court.
When a person files for bankruptcy, there is no guarantee that the bankruptcy court will approve the case and allow the person to use this system for debt-relief purposes. While most cases will get approved, there are also many times when the court will dismiss a person's case. If you are preparing to file for bankruptcy, you should understand the two main types of dismissals courts use when they throw cases out.
Despite your best efforts, you may fail to meet your obligations in Chapter 13 bankruptcy. If this happens, you may be able to get a hardship discharge, which is simply a discharge you get before meeting all the original requirements of your bankruptcy case. However, a hardship discharge isn't a walk in the park; you have to meet all these three conditions:
Modifying Your Plan Isn't Feasible
The first thing the court expects you to do when your financial situation takes a turn for the worse is to petition for a plan modification.