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Bankruptcy FAQ

Important factors to consider before filing for bankruptcy

On Behalf of | Jan 18, 2021 | Bankruptcy

It’s up to you whether or not to file for Chapter 7 or Chapter 13 bankruptcy. Your choice can have serious consequences for your financial future, as well as your peace of mind. Before deciding if personal bankruptcy is the right decision for getting rid of your debt, ask yourself these questions.

Thinking about filing for bankruptcy in Louisiana?

  • Are your wages being garnished? If at least one creditor has sued you and obtained a judgment, the court could be garnishing your wages. Filing for bankruptcy could stop the garnishments.
  • Are you being sued by a creditor? Maybe you don’t have a judgment to repay a debt yet, but if you have been served a summons, you could be at risk. A bankruptcy filing puts a stop to most collection actions.
  • What assets do you have? If your unsecured assets are worth significantly more than your debts, alternatives to bankruptcy might be better for you. But if you have few or no assets, or your assets are secured by loans such as a car or house, bankruptcy might be your best move.
  • How much money do you have saved? Similarly, you might consider bankruptcy if you don’t have significant savings.
  • Have you tried the alternatives? In some cases, creditors like credit card companies are willing to negotiate a settlement, especially if you have fallen behind on your payments. But if your debt is large enough, you may not be able to negotiate your way out of it.

These are important questions, but your life is your own. There are more specific questions, the answers to which could help you make your decision. A conversation with an experienced bankruptcy attorney should help clarify things for you and help you get started on the path to financial freedom again.