Things to Consider Before Filing Bankruptcy

Thousands of people file bankruptcy in Pennsylvania for various reasons. Some file to save their home in the face of foreclosure. Others may file because they lost their jobs and the debts just keep accruing. The circumstances leading up to bankruptcy are never simple, and the decisions you make before you file may become defining moments for the coming years of your life. You could save money or your home. You could improve your mental state as you become free of the mountain of debt. Before you file for bankruptcy, there a few things you should take into consideration.

Do you need to file for bankruptcy?
Bankruptcy may not be your only option or the best option to get rid of your debt. Coming to a decision can be easier when you consider:

• The amount of your debt: Do you owe more than you earn in a year?
• The amount of your savings: Would using savings to pay off debt put you in a tough financial spot?
• The amount of time you need: If you recently lost your job, can you pay off your debt within a reasonable amount of time without cleaning out your savings or retirement plans? 

Chapter 7, Chapter 13 or Debt Negotiation?

Each method of debt relief has its pro’s and cons.  Only an attorney can provide you with legal advice specific to your situation.  The worst thing you can do is listen to a friend or family member, believing that some how their situation is the same as your situation.

Are you prepared to invest the time?
Bankruptcy is not an overnight fix. The Chapter 7 bankruptcy process can be completed in a matter of months, but you may invest a considerable amount of time in preparation. Debt negotiation and the Chapter 13 process requires you to make a commitment to paying off your debts in three to five years. It is important to consider how much time you can afford to invest. 

An experienced and knowledgeable Pennsylvania debt relief attorney can provide you with solid information based on your personal circumstances to help you make the best decision.

By Harold Shepley | Published November 22, 2013 | Posted in Bankruptcy | Tagged chapter 13, chapter 7, Pennsylvania bankruptcy attorney, Pennsylvania debt relief attorneys | Leave a comment