One of the most challenging aspects of being a single parent is taking care of all the household expenses on only one income. This may leave parents facing overwhelming financial struggles that can start to affect their family’s quality of life. Under these circumstances, bankruptcy may be the best solution for achieving debt relief and gaining a fresh start. However, before filing, it’s wise to consult a bankruptcy attorney. They will help explain the following considerations to determine if this is the right option for you.

What to Think About If You’re Filing Bankruptcy as a Single Parent

1. Your Bankruptcy Options 

There are two types of personal bankruptcies you can file: Chapter 7 or Chapter 13. A Chapter 7 bankruptcy requires that you take a means test to prove you don’t earn enough income to pay your debts. If you qualify, it will eliminate most of your financial obligations, but you may have to sell nonexempt assets to pay off a portion of what you owe. Conversely, a Chapter 13 filing will set you up on a repayment plan to pay your debts back over three to five years. You won’t have to liquidate any assets, but you will need to show you have a steady income to make the monthly payments. A bankruptcy attorney can help decide which is a better fit in your case.

2. The Kind of Debt You Have 

Not all debts are eligible to be discharged in a bankruptcy; thus, it’s important to make sure that filing will get rid of the kind of debt you have. A Chapter 7 bankruptcy will wipe out unsecured debts, such as credit card charges, medical expenses, personal loans, past due rent and utility bills, and Social Security overpayments. Typically, non-dischargeable debts include most tax bills, student loans, spousal and child support obligations, and court penalties. 

3. How to Move Forward After Bankruptcy

Anyone who is thinking about filing bankruptcy should carefully consider how their credit will be affected and what it will take to recover. Although you can expect your score to drop after a bankruptcy discharge, you will be able to begin re-establishing your credit fairly quickly with hard work and dedication. By monitoring your credit report regularly, following a budget, and making sure your remaining bills are paid on time, you will show creditors that you can be a responsible borrower once again. 

If you are a single parent struggling financially, contact the bankruptcy attorneys at Ibold & O’Brien to discuss what you can do to improve your situation. They will assist you in finding the most effective way to create a more stable and secure future for you and your children. Offering nearly 40 years of experience, they have helped countless residents throughout Geauga, Lake, Ashtabula, and Cuyahoga County, OH, successfully navigate the bankruptcy process and take back control of their finances. To schedule a consultation with a qualified bankruptcy attorney, call (440) 285-3511, and visit their website for more information on reaching your economic goals.