Ava, Missouri

How to Tell Bankruptcy Is Right for You December 3, 2017

Ava, Douglas
How to Tell Bankruptcy Is Right for You, Ava, Missouri

Filing for bankruptcy has helped many people get out from under their mounting debt. While this option is worth considering if you’re overwhelmed by financial obligations, the decision shouldn’t be taken lightly. There are several factors to think about when determining whether this is the best course of action. Below, The Law Office of Christopher J. Swatosh of Ava, MO, explains how you can determine your candidacy for bankruptcy.

You Meet the Eligibility Requirements

Before petitioning for bankruptcy, make sure you meet the income eligibility requirements. Chapter 7 filings require borrowers to a means test that shows they don’t have enough disposable income to pay the creditors. Under Chapter 13, your debt-to-income ratio must show that you can follow a repayment plan.

The Debt Can Be Forgiven

bankruptcy Ava MONot all debts can be discharged in bankruptcy. Only unsecured debts like credit card bills, personal loans, and medical bills are eligible for discharge. A bankruptcy will only be effective if most of your debts fall into this category rather than secured debts, which must be paid by the borrower.

You Don’t Have Other Options

There are different alternatives to bankruptcy that should be considered before making any decisions. If credit counseling, a debt management plan, or reconfiguring your household budget will resolve the issue, then bankruptcy might not be appropriate. If you don’t see any other way out of this predicament, then filing may be the right course of action.

You’re Comfortable With the Consequences

As helpful filing bankruptcy can be, it comes with some consequences. The petition will become a matter of public record that anyone can see. It will also impact your credit rating for several years, and there’s a chance you could lose non-exempt property as a way to pay back creditors. 

If you have evaluated each of these factors carefully and believe bankruptcy is the best option, it may be time to start the filing process. Working with an attorney will ensure your paperwork is completed correctly and minimize the chances of the case being rejected. Contact The Law Office of Christopher J. Swatosh at (417) 683-2987 to learn more about your options, or visit them online for additional information. 

Other Announcements, Events and Deals from The Law Office of Christopher J. Swatosh, LLC
Why You Should Hire an Attorney for an Amicable Divorce, Ava, Missouri
Filing for divorce is almost always stressful, but being able to cooperate with your spouse can spare you both a great deal of time, money, and emotional trauma. An amicable divorce ...read more
What Is a Personal Injury Journal?, Ava, Missouri
In successful personal injury suits, claimants are entitled to compensation for both economic and noneconomic damages. While there are receipts and invoices for monetary losses,...read more
FAQ About Child Support in Missouri, Ava, Missouri
If you have children but want to end your relationship with their other parent, the issue of child support will inevitably arise. Regardless of whether you two were ever married, the...read more
3 Tips for Sharing the Holidays After a Divorce, Ava, Missouri
Once you’ve signed the final paperwork with a divorce attorney and concluded the separation, you can breathe a sigh of relief. Navigating life after your marriage has ended ...read more
How to Get Through the Holidays When Facing Bankruptcy, Ava, Missouri
Deciding to file for bankruptcy is never easy, but it can be exactly the move you need to make to set yourself up for a more secure financial future. If you are considering filing ah...read more