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Should I file?

The decision to file is a personal decision, not a legal decision. If you can afford to pay your bills, then you should not file for bankruptcy. Bankruptcy is only for honest but unfortunate debtors who are hopelessly insolvent and unable to pay their debts as they become due.

Bankruptcy will “wipe out” most debts, but most individuals want to know the adverse consequences of bankruptcy. Here are some negative consequences:

--bankruptcy will adversely affect your credit. For example, you may be restricted from obtaining credit in the future for months, even years.

--Most bankruptcy debtors get to keep all of their assets, but if you have non-exempt property, you could lose your “non-exempt property.”

--Bankruptcy lawyers charge fees to file for bankruptcy. The typical fee for a consumer case can be $2,000 or more.

--a bankruptcy filing will appear on your credit report for 10 years.

--your credit score will go down

--all debt must be listed in the bankruptcy, even debts you intend to pay, such as a car loan that you want to keep (as long as you reaffirm the debt and keep making the car payments you get to keep the car)

--because insurance rates may be tied to your credit score, your insurance rates could go higher

These factors should be carefully weighed against the benefits of bankruptcy before filing.

If you have found your way to this website, you are probably considering filing for bankruptcy protection. We are here to help you. If one of the following factors are present, and if you are unable to pay your bills, then you may want to file for bankruptcy protection. If you answer “Yes” to one (1) or more questions, then the financial difficulties you are currently experiencing may be remedied with bankruptcy.

  1. I cannot pay all of my normal living expenses and my monthly credit card bills?
  2. I am behind on my house or car payments?
  3. I consistently pay my bills late and incur late charges?
  4. I now use credit to pay for things I used to purchase with cash?
  5. I use one credit card to pay off another credit card?
  6. I get calls at home or work by creditors about past due bills?
  7. I often post-date checks to pay a delinquent bill?
  8. The IRS has garnished my bank account to my paycheck?
  9. My home is being threatened with foreclosure?
  10. I am being sued for the collection of a debt?
  11. I have borrowed high interest money from finance companies or loan companies to pay normal living expenses?
  12. I am thinking about getting a home equity loan or a reverse mortgage to pay off my credit cards?
  13. I or a family member have unmanageable medical bills?
  14. I feel that I am powerless over spending?
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