With all the lawyer posts on the internet about how great an idea it is to go bankrupt, one is left wondering, when should I not go bankrupt? The answer is deceptively simple, but here are a few specific test you can apply in thinking about the issue. The simple answer is, anytime it is not distinctly an advantage to do so.
Bankruptcy is a table set before each eligible person. Unless you are prohibited by law from filing for bankruptcy, usually because you filled before and its not been long enough, everyone who resides in the US can file for Bankruptcy. You must have a social security number and you must have filed your tax returns, and you must have taken a consumer credit counseling course. And, of course, you have to pay the filing fee, but even that can be done in installments if the court allows.
The major reason for not filing for Bankruptcy relief is related to timing. So here are a few benchmarks to apply in rejecting Bankruptcy as a course of action.
My credit score is above 700.
I am still unemployed and things are getting worse.
I have nothing that a creditor can take away from me.
I don’t need to give anything away to a relative.
My credit card and medical debts are less than 80% of my annual gross income.
I am not being sued by someone on a debt that I could not defend or manage to pay.
If any of these are true, and you feel that you debt is overwhelming, you probably want to consult with a Bankruptcy Attorney to get advice on the moves you can make to handle your debt, with, or without Bankruptcy. A good place to start is to find a Consumer Credit Counseling Course. This is not a debt consolidator. This is just a class to help you understand your finances.