Should you file for Bankruptcy?

Should you file for Bankruptcy?

By | 2016-01-12T20:46:12+00:00 January 12th, 2016|Uncategorized|Comments Off on Should you file for Bankruptcy?

If you are an individual who finds yourself swimming in a large amounts of debt, you may be considering filing for Bankruptcy. If you are considering Bankruptcy, it is probably because you feel that you are spending more than you are making in income, and the creditors just wont stop harassing you. And you feel that you are head over heels in debt and have no way out. If you have been seeking out other options and just cant seem to get out of the hole, than Bankruptcy is the right option for you.


Being in debt can affect many areas of your life. Your livelihood, emotional well-being and can even affect any relationships you are in, and not in a good way. If you are in debt, you are probably under a great deal of stress, feeling like you cant even think straight enough to come up with a solution. You may even be facing depression. If Bankruptcy seems to be your only option, you can consult a Bankruptcy Professional in your area, and they can give you the right options for your situation, since everyone’s situation is different.


When filing for Bankruptcy, keep in mind there are different types of bankruptcy that can be filed, depending on your individual situation. Your bankruptcy attorney will guide you in the right direction. Always remember that filing for bankruptcy is nothing to be ashamed of. In fact, it could really benefit your future in the long run. Consulting your attorney in this matter could be the beginning of the rest of your financial future.


Not sure if you are qualified to file for Bankruptcy?   Since there a different types of bankruptcy to file, Chapter 7 and Chapter 13 being the most common. If you are eligible to file for Chapter 7, you must not show another filing in the previous 6+ years as a resident in the United States. You must also prove that after paying all expenses in a given month, that you cannot afford to repay debt. Also be sure that you have never filed for Chapter 7 in the last 6 months or so. With filing Chapter 7, you may end up losing property (other than the home) that is very valuable to you in order to satisfy the debt that you owe. When filing, you will have to fill out a lot of paperwork, attend court and then wait 70-75 days for all debts to be discharged by the court.
Many people chose not to risk the chance of losing their valuable property, will file for Chapter 13 instead. This filing does not discharge debts, but allows the person holding the debt to repay it over a 5 year period. The individual will have to review all expenses and come up with a payment arrangement and amount of payment for approval by the court. You must not have move than $750,000 in debt to be able to file for Chapter 13, in secured debt that is. Unsecured debt should be $250,000 or lower. Certain debts will not be excused under Chapter 13, student loans for example. Filing a petition with the court will begin the Chapter 13 process. After submitting the petition you have 15 days to submit your payment schedule, a court trustee is the appointed to the case, and will act as a middle man between the creditors and the person making repayments. Within 30-50 days the creditors will hold a meeting to discuss the repayment plan. The Judge then OK’s it. At this point it is completely up the person holding the debt to make payments on time.
Speak with your Bankruptcy attorney today, to see which plan is best for your situation.

About the Author:

Yanni Raz is The Founder and CEO of HML Investments, with over 15 years in the real estate and hard money lending industry, Yanni is an expert in real estate investing, trust deed investments and more.