Are you struggling with mounting debts and seemingly endless financial problems? If so, bankruptcy may be an option for you to consider. While filing for bankruptcy can provide relief and put an end to debt collectors harassing you, it is a decision that should not be taken lightly.

Before you take the leap, you need to ask yourself certain questions and consult with an attorney. Our Bay Area bankruptcy attorney at the Law Offices of Melanie Tavare can help you explore your debt relief options and determine if filing for bankruptcy is the right thing to do in your specific situation.

Questions to Ask Yourself Before Filing for Bankruptcy

If you are thinking about filing for bankruptcy, ask yourself these six important questions to determine if bankruptcy is the right choice for your situation.

• “Can I Repay My Debt Without Bankruptcy?”

Before you file for bankruptcy, ask yourself if there are alternative solutions you could try to repay your debt. Consider trimming your budget, picking up a side hustle, or negotiating with your creditors to work out a repayment plan. If you can repay your debts without bankruptcy, this may be the best option for you, as filing for bankruptcy will impact your credit score and stay on your record for years to come.

• “Are Creditors Willing to Negotiate with Me on a Settlement?”

If your debts are manageable, but you are struggling to meet your minimum payments, it is worth reaching out to your creditors and seeing if you could work out a settlement offer. Creditors may be willing to accept less than you owe just to recoup some of their losses. You may want to consider working with an attorney to help negotiate on your behalf.

• “Are My Debts Eligible for Discharge?”

Chapter 7 bankruptcy is designed to wipe away most unsecured debts, including credit card debt and personal loans. However, some types of debt cannot be discharged through bankruptcy. According to the U.S. Bankruptcy Court in the Northern District of California, nondischargeable debts include home mortgages, certain taxes, and debts for alimony and child support, to name a few. Before making the decision to file, make sure you understand which debts can and cannot be discharged.

• “How Much of My Income Could Be Used to Repay Debt?”

If you are considering filing for Chapter 13 bankruptcy, you will need to figure out a repayment plan based on your income. In a Chapter 13 plan, you will need to pay back a portion of your debt over a period of three to five years. You might want to consider working with your bankruptcy attorney to determine how much of your income will be allocated to repaying your debts.

• “Have I Explored the Alternatives?”

Before you file for bankruptcy, take time to explore all alternatives. Consider credit counseling, debt consolidation, or debt settlement options that may help you get your finances back on track before filing for bankruptcy. These options may help you avoid the negative consequences that come with declaring bankruptcy.

• “What Does My Attorney Say?”

If you are considering filing for bankruptcy, the advice and guidance of a bankruptcy attorney is invaluable. An attorney can help you understand the pros and cons of filing for bankruptcy, determine your eligibility, and guide you through the legal process. Be sure to ask your attorney for their professional opinion on whether filing for bankruptcy is the right choice for your situation.

Get Back on Track With an Attorney

Bankruptcy is a serious decision that you should not take lightly. Seek the guidance of a bankruptcy attorney to help you through the legal process and ensure you make the most informed decision for your financial future. Our attorney at the Law Offices of Melanie Tavare can help you get back on track to a life of financial stability. Call 510-255-4646 for a case evaluation.