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Determine if bankruptcy is the right decision

Any of our Escondido readers who are familiar with previous posts here know that making the decision to file for bankruptcy is not an easy one. Filing for bankruptcy will have significant consequences - both good and bad. So, it should be no surprise that most people take the time they need in order to determine whether filing for bankruptcy is in fact the right move.

The financial situation is different for every family or individual in Escondido. As a result, the primary question most people should think of when they are considering a personal bankruptcy action is this: Do I even qualify for bankruptcy protection?

Chapter 7 bankruptcy, in particular, may be out of the reach of some people if they earn a steady income and are in some way able to continue to make payments on debts. Of course, the flip side of that coin is that a person in that situation may not need to file for bankruptcy at all - they may be able to make certain changes to their spending and saving habits and find a way to begin to chop down debt balances without filing for bankruptcy.

But, for those who do end up deciding that bankruptcy is the right move, the next step is to think about what will happen during the bankruptcy process. In Chapter 7 bankruptcy, many different types of debt will be forgiven, but some property may need to be forfeited as well in order for those items to be sold, with the profits being applied toward outstanding debt.

Source: FindLaw, "Is Bankruptcy a Good Idea for You?," Accessed Nov. 28, 2015

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