In today’s economic upheaval a question that is plaguing many Tennesseans is: When should I file bankruptcy?
It is important to first understand some of the basics about bankruptcy. What is bankruptcy? Bankruptcy is provided for under the United States Code Title 11. Complete or liquidation bankruptcy is found under Chapter 7 of the said Title, while repayment bankruptcy is found under Chapter 13. Bankruptcy is very complicated and involves numerous legal issues. This is why you should have the assistance of a bankruptcy attorney.
The answer to when you should file for bankruptcy is not always the same for every person.
Bankruptcy like many legal issues involves questions of fact and issues of law. An attorney experienced in bankruptcy law will review your financial circumstances, including income, unsecured debts like credit cards, home mortgage, car loans, etc. The lawyer will also review and analyze your monthly expenses including utilities, food, transportation expenses and the like. After getting a good grasp on your financial situation your bankruptcy attorney can then look at the options available under bankruptcy law.
There are many reasons that a person needs or should file bankruptcy.
Generally speaking, one should file bankruptcy when you are unable to reasonably repay your debts without threatening your ability to provide the life essentials like food, clothing and housing. Of course in today’s fractured real estate market housing is one of the leading causes of bankruptcy. Obviously, if your home is in foreclosure filing bankruptcy is usually imminent. Both chapter 7 and Chapter 13 bankruptcy can help you when you are facing foreclosure. Sometimes this decision is a result of a lawsuit – like for a car accident, or a garnishment of wages for a bad medical or credit card debt. Certainly if you have been sued and a judgment issued you should immediately seek the advice of a bankruptcy attorney – a garnishment will be right around the corner.
Unemployment, pay reductions, foreclosure, medical bills, and divorceare leading causes of bankruptcy.
If you are in one or more of these situations and are considering your debt relief options contact an attorney for a bankruptcy evaluation and consultation. Keep in mind that before you can file bankruptcy there are certain steps that must be taken like credit counseling, and you must meet certain qualifications including passing the means test. Your bankruptcy lawyer can help you complete the pre fiing steps, and will advise you concerning the bankruptcy qualifications.
As a part of the United States Bankruptcy Code the Us Congress has designated law firms, attorneys and lawyers as debt relief agencies.
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