When should you consult with a professional about personal bankruptcy?
- Inability to pay debts as they become due
- Borrowing money from pensions and retirement accounts to pay bills
- Tapping home equity loans to pay bills
- Borrowing money from one credit card to pay another
- Having exhausted all credit card debt limits.
- Generally “Robbing Peter to Pay Paul”
- In default under a residential home mortgage
- Collection agencies and creditors sending you dunning letters and calling your house
- Sued for money you do not dispute but simply cannot pay
- Concerned about whether you can keep your home
What will a bankruptcy attorney ask you?
- How much debt you owe?
- Do you own a home?
- Do you have a mortgage?
- Is it in arrears and if so how much? Is the house in foreclosure?
- Are you being sued?
- Do you own a car? Is it leased or financed?
- Are you married? Do you both have debts?
- How many dependents do you have? Children, elderly parents?
- How much money do you earn?
- Do you have savings? How much?
- Do you have pension or retirement money?
- Have you prepared a budget of your income and expenses?
- Have you repaid family members or other creditors in the last year?
- Have you transferred any of your property in the last 6 years?
REMEMBER: There is no "one size fits all" bankruptcy. Each person has a unique set of circumstances that must be carefully analyzed by a professional.
What your bankruptcy attorney should be able to answer
- Which debts will be discharged
- What property can be retained
- What is the Means Test and will I qualify
- How will bankruptcy affect my family members
