Debtor Wants Advice Whether or Not to File Bankruptcy

Only a bankruptcy lawyer can give you legal advice whether or not you should file for bankruptcy protection, but you have to decide if it is the right financial decision.

This personal bankruptcy story was posted in June of 2011:

“I am wondering if you can help me decide whether to file for bankruptcy. Four years ago I was a newlywed. I had perfect credit. I had just bought a house, two cars, credit cards with limits in check, working a good job. One month after we purchased our home, my ex-wife left me and left the country leaving me with all the debt.

I couldn’t sell the house, or car, refinance or anything because everything was in both of our names and she refused to sign-off on anything. I also went through a nasty depression, lost my job and after a year struggling to keep everything together I had decided to let everything go, move in with parents.

My home went into foreclosure last year and it was auctioned off January 2010. I lost my car in December 2009 with a $5000 deficiency after repossession. My last credit card payment was in late 2009. Last year I ended up in the hospital with a $4000 medical bill. I stopped paying all of my bills in December 2009 and I have roughly $24,000 in credit card and hospital bills, including interest and repossession balance.  I work a part-time job making roughly $1,000 per month. I am desperately trying to find better work.”

For this debtor, the decision to file for bankruptcy should be made only after seeking the advice of a bankruptcy lawyer. However, searching for information about bankruptcy before you consult with a certified or licensed legal representative can be smart, and bankruptcy forums can provide information about the types of questions you may need when you seek legal help.

Some filers try to file Pro Se, without representation, and some are successful, others are not. Even with legal representation, only 60 percent of Chapter 13 Bankruptcy filers are successful in finishing Chapter 13 bankruptcy. Most bankruptcy filers fall behind on their payments.

Divorce is one of the leading causes of bankruptcy. Other reasons debtors file for bankruptcy can include: unexpected medical expenses, sudden loss of income, and over extension on credit card debt.

How do you know if you are bankrupt? You are completely financially bankrupt if your current sustainable income plus any cash reserves will not pay all of your living expenses, pay interest on outstanding loans, and reduce some of your principal on those loans while paying on them for five years. Paying off debts for five years is chosen because five years is the maximum legal number of years a United States Bankruptcy Court allows an individual to work their way out of bankruptcy protection.

If you are bankrupt, you need relief from the stress of debt and you live in or around the metropolitan area of Detroit, Michigan, contact us at www.betterbankruptcy.com . We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.

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