Making The Decision To File For Bankruptcy

by John Christopher Robinson on Mar. 25, 2019

Bankruptcy & Debt 

Summary: Making The Decision To File For Bankruptcy

With a massive amount of debt including loans and credit card payments, many consumers might think that bankruptcy is the solution to getting back on the right financial track. When collectors continue to call and it seems like there is no way to get out from under the umbrella of being in debt, then bankruptcy might be the best option. Most people don't think that bankruptcy would be something that they would need to do, but it can result in a feeling of freedom.

There are over 700,000 consumers and businesses expected to file for bankruptcy of one chapter or another in order to clear away debt that is owed. This estimate is higher than the number of people who filed in 2017, but it is lower than the number of bankruptcy filings in 201. Overall, the household debt in the United States is more than $13 trillion. This amount includes credit card debt as well as student loans.

Student loans are sometimes hard to put through a bankruptcy claim, but it is possible to succeed with the correct information presented as well as valid reasons for not being able to pay back the debts. Fortunately, other types of debt are often easy to pay off through bankruptcy or to at least get a payment to where it's as minimal as possible. After reaching the decision to file for bankruptcy, the easiest part is going to court and working to get the proper documents filed.

When payments and debts are too high, a bankruptcy attorney might work to gather all of the documents needed to file for the correct chapter that will offer the best results for the individual or business. After declaring bankruptcy, collection calls begin to cease and certain types of debt may be discharged.

Legal Articles Additional Disclaimer

Lawyer.com is not a law firm and does not offer legal advice. Content posted on Lawyer.com is the sole responsibility of the person from whom such content originated and is not reviewed or commented on by Lawyer.com. The application of law to any set of facts is a highly specialized skill, practiced by lawyers and often dependent on jurisdiction. Content on the site of a legal nature may or may not be accurate for a particular state or jurisdiction and may largely depend on specific circumstances surrounding individual cases, which may or may not be consistent with your circumstances or may no longer be up-to-date to the extent that laws have changed since posting. Legal articles therefore are for review as general research and for use in helping to gauge a lawyer's expertise on a matter. If you are seeking specific legal advice, Lawyer.com recommends that you contact a lawyer to review your specific issues. See Lawyer.com's full Terms of Use for more information.