Should I File For Bankruptcy?

If you are in over your head in debt, it’s likely that the idea of filing for bankruptcy protection has crossed your mind. In some situations, you don’t have many choices. In others, however, you may – at least temporarily – be able to convince creditors to extend your terms or some other compromise. After all, they want their money back and may be willing to give you a break – even if it means they have to wait longer to collect.

However, if you are at the point where you are relying on credit cards, the creditors are calling non-stop, you can’t pay your rent or mortgage, the car is about to be repossessed, etc., bankruptcy may certainly be worth considering.

To determine if bankruptcy is an option for you and your family, you should have a good understanding of the benefits of bankruptcy protection. (You probably already know the down side; filing will seriously impact your credit and be on your public record with credit scoring bureaus for 10 years.)

What are benefits of filing for bankruptcy?

Depending on whether you file for Chapter 7 or Chapter 13, protection offers varied benefits. Either way, filing for bankruptcy will stop the harassing calls and mail from creditors immediately and put you on the road to a fresh start.

If you file for Chapter 7 bankruptcy, the vast majority – if not all – of your consumer debts will be fully discharged. In other words, you will no longer have to pay them. That, of course, is a major benefit. There are some debts that will not go away with bankruptcy and those include child support obligations, student loans and taxes. However, you may have an easier time paying those bills with all of your other financial obligations wiped away.

Chapter 13 bankruptcy is actually a reorganization of your debts; obligations don’t go away, but your will have smaller payments and longer terms. You will have to agree to make monthly payments according to the reorganization plan drafted by the bankruptcy court. This form of bankruptcy protection may allow you to keep your house and vehicle. As long as you make your payments according to the schedule, you can live in the lifestyle you’ve been living. Note: if you cannot pay those smaller payments over a longer period of time, according to the reorganization schedule, you may want to consider Chapter 7 bankruptcy, instead.

Either way, your first step is to speak with a knowledgeable, experienced bankruptcy attorney who can review your personal situation and advise on you how to proceed. Joel R. Spivack, Esq. has been helping people in South Jersey get on the road to a fresh financial start through bankruptcy for more than 20 years. Contact him today for a free consultation. Call 856-488-1200.


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Attorney Joel R. Spivack is an experienced bankruptcy and residential real estate transactions lawyer in Cherry Hill, New Jersey. Clients come to us for legal services, but what we really provide is peace of mind. For more than 30 years, Attorney Spivack has helped people make wise, informed decisions about bankruptcy filings, debt relief options and residential real estate transactions.
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