Filing for bankruptcy is not a choice to be taken lightly. While the prospect of debt relief sounds appealing, the consequences of filing for bankruptcy can be long-lasting. For this reason, it’s best to weigh both sides of the issue, ideally with a firm experienced in bankruptcy law like Osborne, Tripp & Schmidt SC. Based in Sparta, WI, their attorneys offer a few pointers for determining whether Chapter 7 bankruptcy, which involves the liquidation of nonexempt assets, is right for you.

3 Signs That Chapter 7 Bankruptcy Is Right for You

1. You Qualify

Bankruptcy is designed for individuals who are legitimately overwhelmed by their debts. If you have a certain level of income or are in possession of certain assets, you may not be allowed to file for bankruptcy. An attorney experienced in bankruptcy law will be able to tell you whether you qualify.

2. Your Debt Is Largely Unsecured

A secured debt is a loan guaranteed by collateral. Liens, such as those on your home mortgage or car loan, won’t be cleared by Chapter 7 bankruptcy. Some other legal debts, such as student loans, taxes due, and child support payments, also are not affected by Chapter 7 bankruptcy. But if you have mostly unsecured debt, such as credit card balances and medical bills, Chapter 7 bankruptcy may be right for you.

3. You Are Comfortable with the Consequences

Bankruptcy leaves lasting scars, including the forfeiture of property and the presence of a bankruptcy notation on your credit report for 10 years. But if, after careful consideration, you feel you can accept these consequences in exchange for a new economic opportunity, bankruptcy may be the right choice.

If you meet these simple criteria, you may want to consider Chapter 7 further under the guidance of an attorney with experience in bankruptcy law. If you don’t meet these criteria but still feel crushed by your financial obligations, another type of bankruptcy may be worth considering.

If bankruptcy seems right for you, contact a skilled bankruptcy lawyer for a consultation. In Sparta, WI, the conscientious team at Osborne, Tripp & Schmidt is well suited to help you with bankruptcy law or any other legal matter, from criminal law to child custody issues. Call at (608) 269-2400 or send a message on their website for more information.