Do You “Need” to File For Bankruptcy?

“Do I Need to File For Bankruptcy?”    “Should I file for Bankruptcy?”   I get these questions all the time.  They are great and necessary questions.   We answer these questions by working through the following process.

What Are Your Needs and/or Wants?

We first need to determine your “needs” or at least your “wants”.  In other words, we find out what problem are you seeking to prevent/remedy.  Financial problems come in all sizes and varieties.  People contact me for options to deal with issues including how to:

  • Deal with / get rid of credit cards debts
  • Deal with / get rid of medical debts
  • Stop or avoid foreclosure on a home
  • Get rid of a second mortgage on a home
  • Stop or avoid collection letters and calls
  • Stop or avoid a civil lawsuit
  • Stop or avoid  wage or bank account garnishment
  • Stop or avoid vehicle repossession
  • Seek the return of a vehicle just repossessed
  • Find a “better way” to pay nondischargeable tax debt
  • Find a “better way” to get caught up on their mortgage payment
  • Pay their debt, or as much as possible, in a way they can afford
  • Make the stress of debt go away

Bankruptcy will often resolve these issues.   But the real question is whether there are any other ways, including non-bankruptcy options, to resolve these issues.

What Are Your Options?

More often than not, there is more than one way to resolve an issue.  Here are a few examples.

Prevent Foreclosure

If you want to prevent a foreclosure, you might be able to:

  • Pay the amount past-due and bring the account current
  • Obtain a mortgage modification
  • Refinance the debt
  • Complete a sale of the home
  • Execute a Deed in Lieu of foreclosure
  • Engage in pre-foreclosure mediation
  • File a lawsuit to stop/enjoin a foreclosure that does not meet statutory requirements
  • File a Chapter 7 Bankruptcy
  • File a Chapter 13 Bankruptcy

There are many potential options to prevent a foreclosure.  However, your circumstances will determine which ones are available in your specific situation.  Of course, we help you review your options so you can pick the one that meets your needs/wants.

Avoid Wage Garnishment

If you want to avoid a wage garnishment, you might be able to:

  • Pay the balance due
  • Make a deal with the creditor to make payments
  • Make less than about $900 net a month
  • Quit your job and look for another one and hope they don’t find you
  • Find a job and work “under the table”
  • File a Chapter 7 Bankruptcy
  • File a Chapter 13 Bankruptcy

Again, there are many potential options to avoid a wage garnishment.  But, not all of the options are available to everyone.  Once again,  we help you review your options so you can pick the one that meets your needs/wants.

Do You Need to File?  Should You File?

We identify your financial issues.  We tell you the the general non-bankruptcy and bankruptcy options.  Then we discuss your specific circumstances (e.g., maybe you have a foreclosure scheduled next Friday), and the specific options that are available to you.   If you have more than one option to resolve the issue, then we discuss the pros and cons of each.  Once we are done with this process then you will be able to confidently answer the questions: “Should I file bankruptcy?” and “Do I need to file Bankruptcy?”    That is what we do.  We will help you look at your  options and then decide which option works for you.  It starts by a free initial consultation and/or your review of this website and its resources.  If we can help, just let us know.  We would love to help.

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