If you're trying to manage out-of-control debt, you might feel like you're waging an unwinnable battle. It's important to understand, however, that you still have options--ones that could help you take back control of your finances and your future. Bankruptcy offers one such path out of debt, but many people are unclear about what bankruptcy is and how it can help. Below are three ways to tell if bankruptcy is right for you.

3 Ways to Tell If Bankruptcy Is Right for You

1. Check Your Eligibility

Chapter 7 and Chapter 13 are the two main types of bankruptcy filed by consumers. Chapter 7 discharges most unsecured debt, while Chapter 13 reorganizes your debt into a long-term repayment plan. For either bankruptcy type, you need to meet certain eligibility requirements. Chapter 7 filers must prove that their income is insufficient to realistically pay back what they owe; Chapter 13 filers need to establish that they have enough income to take on the responsibility of a payment plan.

2. Know What Will & Won't Be Discharged in Bankruptcy

Not all debts will be wiped out by a Chapter 7 filing. Knowing what will and won't be discharged can have a major impact on whether you ultimately decide to file. Student loans are not dischargeable in any way, nor are late child support payments or many kinds of taxes. Your bankruptcy lawyer will ensure you have full knowledge of what debts qualify for discharge.

3. Think About Your Home

Both Chapter 7 and Chapter 13 bankruptcy filings initiate an automatic stay on a filer's home foreclosure. But before you file, think about your home and what is best for your finances and your family. Some filers may be open to selling their homes so they can offset what they owe, while others may have no other choice than to fight to stay in their homes. Consider this carefully; you don't want to sacrifice the roof over your head without a solid backup plan.

The bankruptcy lawyers at  James T. Kratovil Law Offices, PLLC have been serving clients in the Charles Town, West Virginia, area for over 35 years. Call (304) 728-7718 or visit the law office's website to speak to an attorney about your bankruptcy options; you can also reach them on Facebook and Google+. See if bankruptcy is the most effective way out of debt for you, and call Attorney Kratovil today.