Picking up from 7 Questions to Ask Yourself When Considering Bankruptcy (Part 1), the following discusses three more questions that borrowers should ask themselves – and answer – before they move forward with a bankruptcy case.
If people who are thinking about filing for bankruptcy have additional questions regarding their situation or the process, they are encouraged to contact the Law Office of Jon B. Clarke for a professional case evaluation.
- What type of debt am I currently carrying?
While bankruptcy can be an effective way for a person to discharge some of his debt, it’s important that anyone considering bankruptcy knows that this option will NOT discharge all debt and that some types of debt may remain after the bankruptcy proceeding. Specifically, some of the types of debt that will not be discharged by bankruptcy include court-order payments (like spousal support, child support and restitution fines associated with criminal cases); student loan debt; and some tax debt.Therefore, if most of your debt is associated with non-dischargeable debt, then filing bankruptcy may not be the best solution for your financial issues.
- Are there alternatives to bankruptcy that I should consider?Before filing for bankruptcy, it’s typically a good idea for borrowers to figure out if there may be an alternative to bankruptcy that is better suited to their financial situations. For instance, some borrowers may benefit from debt consolidation or other bankruptcy alternatives.
If a borrower has filed for bankruptcy recently, or if that borrower earns too much money to quality for bankruptcy, then he may not be eligible to file again and may have to pursue a bankruptcy alternative in order to resolve his financial issues.
- What are the benefits of filing for bankruptcy?In general, some of the benefits of bankruptcy include that borrowers can:
- Discharge some (or potentially most) of their outstanding debts
- Keep some of their assets, according to bankruptcy exemptions
- Secure a financial fresh start.
Depending on the specifics of a borrower’s situation, there may be additional benefits associated with filing for bankruptcy; therefore, it’s important to talk to an experienced bankruptcy attorney to receive a case evaluation specific to your situation.
Stay posted for the final installment of this blog for some additional questions that are important for debtors to ask themselves when they are seriously thinking about filing for bankruptcy.
Colorado Bankruptcy Lawyers at the Law Office of Jon B. Clarke, P.C.
If you are overwhelmed by seemingly insurmountable debt and are looking for a financial fresh start, contact the trusted Colorado debt relief and bankruptcy lawyers at the Law Office of Jon B. Clarke, P.C. For more than 35 years, Mr. Clarke and his diligent support staff have been successfully helping our clients resolve even the most complex bankruptcy cases for both individuals and businesses alike. Our experienced legal professionals are committed to providing each of our Clients with the personalized debt relief assistance they need, and we will work tirelessly to ensure that our Clients’ cases are resolved as favorably and efficiently as possible.
For a thorough assessment of your situation, along with expert advice regarding the best manner in which to move forward to unburden yourself from debt, call us at (866) 916-3950 or email us some details about your situation by clicking here.