Wilmington's Top Rated Bankruptcy Lawyer

If you're battling debt, you know how frustrating it can be. Collectors call you day and night, paying your bills feels like a game of chess, and stress is a part of daily life. When facing this situation, it's no surprise that so many people wonder if filing for bankruptcy is the right decision. After all, having your debt wiped out sounds like a great way to get back on your feet, right? However, many debtors are shocked to find out that it might be better to do nothing at all in some cases -- at least for now. Here are some questions to ask yourself when trying to determine whether you should file or wait.

Can Creditors Obtain a Judgment Against You? 

Creditors talk a big game, and when they call you, it might seem like they have legitimate threats. However, in some situations, the only thing a creditor can do is annoy you with phone calls and letters. If you don't have any real estate equity, you don't have any non-exempt assets, you have a low-paying job or are unemployed, and you have income that creditors can't take, such as public entitlement benefits, then creditors can't touch you. This situation is called being "judgment proof," and as long as you can put up with the phone calls and letters, it might serve you well to hold off on filing for bankruptcy.

Will Your Debts Be Wiped Out During Bankruptcy? 

Depending on the type of debt you're facing, bankruptcy might not do you any good. If you have mounting credit card debt or medical bills, then bankruptcy probably can help you. However, if you're staring down past-due child support payments or you owe money to the IRS, filing for bankruptcy isn't going to do you much good because you'll still owe those debts afterward. Student loans can also be tricky to wipe out, because sometimes the lender will impose wage garnishment, removal of your eligibility for aid, revocation of your right to defer, and even a reduction in Social Security and disability income.

Could You Lose Your Home or Car? 

If you're behind on your mortgage payments or haven't been able to make your car loan payments, you might benefit from filing for Chapter 13 bankruptcy. Chapter 13 bankruptcy can help you by restructuring your debt and allowing you to pay it off over the course of three to five years with one monthly payment. If you have arrearages on your loans, you can't make those up through a restructuring plan. However, if you have a lot of additional debt, other than your loan payments, they can be wiped out through Chapter 7 bankruptcy. Filing for Chapter 7 might free up the income you need to catch up on your payments.

Bankruptcy doesn't have to be a scary process. In fact, you can use bankruptcy to your advantage to help get you back on your feet. However, bankruptcy is a legal process, and as with all legal decisions, it's best to consult with a bankruptcy attorney before making any decisions. Only a qualified bankruptcy lawyer will be able to look at your individual circumstances and advise you as to whether or not filing a bankruptcy petition will benefit you.