If you are sick and tired of being in overwhelming debt, you may have concluded that you need to make a drastic change. Financial troubles do not usually go away unless significant changes are made. If you do not feel that you can increase your income or reduce your outgoing expenses significantly enough to tackle your debts, considering filing for bankruptcy could be a wise move.
When first looking into your bankruptcy options, you will discover that there are several different types of bankruptcy. For individual debtors, the most common choice is Chapter 7 bankruptcy or Chapter 13 bankruptcy. The best choice for you will depend on your individual circumstances. The following is an overview of when filing for Chapter 7 will likely be the best choice.
When you have a low income
It’s usually only possible to file for Chapter 7 bankruptcy when you have an income that is lower than the median household income for a family of your size in North Carolina.
When your debts are too overwhelming to tackle alone
Chapter 13 bankruptcy is a great choice if you have an income high enough to pay back your debts over time. However, if you do not have any significant disposable income and your debts are very high, Chapter 7 will likely be a better choice.
When you have huge medical or credit card debt
It’s common for those with medical or credit card debt to file for Chapter 7 bankruptcy. This is because filing will enable debtors to quickly liquidate their assets to pay back the debt, and they will likely benefit from a complete debt discharge.
When you are at risk of going through foreclosure
Filing for Chapter 7 bankruptcy will not guarantee that you will be able to keep your home if you are already facing foreclosure. However, it will enable you to put an automatic stay in place as soon as you file for bankruptcy, meaning that creditors will not be able to take any further action against you.
If you are ready for change and you are willing to file for bankruptcy to secure a debt-free future for you and your loved ones, you should not delay. The sooner you take action, the sooner you will be on your way to positive change.