Should I File Bankruptcy?

Should I file for bankruptcy in Wilmington, NC? This is the first question you need to ask if you have racked up excessive debt and are wondering if it makes sense to file for bankruptcy.

There are pros and cons as to whether it makes sense to file for Chapter 7 bankruptcy, Chapter 13 bankruptcy or simply make the hard choices and necessary changes to avoid bankruptcy.



Should I File For Bankruptcy Or Can I Avoid It?

First of all, how does an individual avoid bankruptcy? It is important to avoid increasing your credit debt. Prioritize your life and get rid of the bills you don’t NEED, for example cable TV.

Decide what is most important versus least important. Control your debt and make your payments. But what if you’ve done that already and your debt continues to rise?

Individuals who have buried themselves in excessive debt may eventually have to ask themselves these questions: Should I file for bankruptcy? Does it make sense for me to file for bankruptcy?

Should I File For Bankruptcy? Assess Your Situation FirstBusiness Bankruptcy Attorneys Wilmington NC

Before you declare bankruptcy determine your financial situation. Do an inventory of all your liquid assets, including retirement funds, stocks, bonds, vehicles, and other non-bank account funds.

Next, collect and add up your bills and credit statements. If your assets add up to considerably less than your debt, filing for bankruptcy may be the way to go.

Consequences of Bankruptcy

However, when asking yourself “Should I file Bankruptcy?” you must first consider the consequences.

Of course, bankruptcy takes a mental as well as a financial toll. Feelings of failure or of loss may arise and you must be prepared to cope with these feelings. Without coping, these feelings may affect your personal life and important relationships.

Another downfall to filing for bankruptcy is that borrowing money may become difficult or even impossible for up to several years. This may impact your spending habits and make the life you were currently living difficult to manage. Lastly, your credit reports will be impacted and this may actually affect your career.

Are There Benefits To Filing Bankruptcy?

When you ask the question “Should I file for bankruptcy?” you are also asking yourself “how can bankruptcy be beneficial?”

Let’s say you’ve done all you can trying to negotiate a payment plan with your creditors but they refuse to give you any more time and demand their payment in full. Unfortunately your liabilities exceed your assets and income and it is impossible for you to make the payment.

The only other option is to file for bankruptcy which means you get to start over financially. This can be a huge load off your back mentally as well as financially.

Also, some people are afraid to file for bankruptcy in fear that they might lose the money they’ve accumulated in their IRA’s. Well, good news! In 2005, the Supreme Court stated that bankruptcy protects IRA’s from creditors allowing debtors to hang on to their IRA.


Before considering filing for bankruptcy you should first prioritize your payments. House payments and car payments should be paid before credit card payments. Next, be sure to try all other options, such as negotiating with your creditors and making loan modifications.

Once you eliminate all other options and decide filing for bankruptcy is the road you must take, don’t wait. Do not spend time second guessing yourself all the while just accumulating more debt. Get professional help and take advantage of the fresh start bankruptcy allows.

Ultimately, if you are stressed financially then asking “should I file for bankruptcy” is the first step on your road to financial recovery.

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Should you file for Bankruptcy?

This week's episode of The Beasley Allen Report examines the issue of Bankruptcy. Lawyer Gail Donaldson talks to host Gibson Vance about Bankruptcy laws, and how they apply to various debts. When can a person file for bankruptcy, and when is it the best option? Gail talks about different types of bankruptcy filings, the types of debt that may or may not be dischargeable through a bankruptcy filing, and how filing for bankruptcy may affect a person's financial standing in the future. In a typical bankruptcy case, Gail says a lawyer will take a look at the individual debts and circumstances surrounding issues such as mortgage foreclosure or repossession on property. Usually, a person can work out arrangements in the court to repay the debt on a manageable schedule, without losing their home or property. Other types of bankruptcy filings may wipe out debt, but may require debtors to give up property. Gail says people considering bankruptcy should worry less about damaging their credit, as they will improve their ability to pay bills and improve their situation in the long run.