When bankruptcy is not an option

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When Bankruptcy Is Not An Option

Just because you say you are bankrupt does not make it so.  There is the famous episode of The Office where the lead character Michael Scott “declared” bankruptcy to everyone within earshot and thought he was done – not because he just said the word bankruptcy but because he “declared it”.  Just because you say it  or even declare it does not mean you are bankruptcy – a court has to designate you as bankrupt.  Due to this process you might ask when bankruptcy is not an option?  You petition the court to designate you as unable to pay your debts – then the court has to decide if you are eligible to be forgiven of your outstanding debt.  Sometimes there are very good reasons not to declare bankruptcy.  When bankruptcy is not an option might happen when you have a spouse that has little or no debt and assets separate from your own – in this situation it may be a bad idea to file bankruptcy.

I know I say it all the time in this blog but when you are looking at bankruptcy you need to speak with an experienced bankruptcy lawyer.  I sometimes feel like bankruptcy is a chees match and you need to know the ramifications of all your moves well before you make a move otherwise the results can be devastating.

Here are three common areas when doing a bankruptcy needs to carefully planned and considered.  If you have any thing close to these things going on call us and come in for a consultation before you make a bad and costly mistake.

Kinds of Debts: Some kinds of debts might not go away in bankruptcy ie: Student Loans. So if you are filing just for student loan debt you might want to make sure your student loans are the types of student loans that are eligible fore a discharge in bankruptcy

Filing Bankruptcy Solo – without your spouse:  Sometimes there are joint assets or debts that will cause a huge impact on your non-filing spouse.  You might want to know about that before you file.

Lots of Stuff:  Many people loose their assets in bankruptcy.  I suggest you might want to know what you will lose before you file the papers requesting bankruptcy status.  If you will only wipe out a small amount of debt but loose your home or car in the process you will need to determine if bankruptcy is worth it.

When bankruptcy is not an option needs to be determined on an individual basis and in my opinion with the help of an experienced bankruptcy lawyer by your side.

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