Is Bankruptcy Right for Me?

Questions to Ask Before You File

Are you having difficulty paying your bills and meeting your ongoing financial obligations? The United States Bankruptcy Code allows options for debtors to gain a fresh start with their financial situation. Bankruptcy, however, is not for everyone.

People with small amounts of debt who can benefit from other debt relief options may not benefit from the bankruptcy process. At Arnold Law Group, we are dedicated to providing honest answers and helping you have confidence that you are on the right path to debt relief. Contact us if you have further questions!

Consider the questions below to determine whether bankruptcy may be the right choice for you:

• What can bankruptcy do for me? - Filing for bankruptcy establishes an automatic stay and protects against wage garnishments, repossessions, and other actions. Most importantly, it can eliminate most of your debts with a debt discharge.
• What can't bankruptcy do for me? - Bankruptcy is not able to eliminate your tax debt or student loan debt in most cases. It also does not stop criminal or dissolution proceedings.
• What is the downside of bankruptcy? - Bankruptcy can stay on your credit report for 10 years. Some companies will not give you loans if you have a bankruptcy on your credit report, and you will likely receive high interest rates because you are considered a perceived risk.

What chapter of bankruptcy should I file?

If you have determined that bankruptcy is right for you, the next step is determining under which chapter of the United States Bankruptcy Code to file. Chapter 7 consists of a liquidation process in which a portion of assets are sold to pay off your financial obligations.

Chapter 13 bankruptcy is for individuals or couples who cannot meet the eligibility requirements of a Chapter 7. It allows you to restructure your debts into a manageable monthly payment plan that lasts for three or five years.

Consult a bankruptcy lawyer in San Jose today!