While filing for bankruptcy is not necessarily the answer for everyone, it can be a good vehicle for leaving financial worries behind. Here are some scenarios where filing for Chapter 7 or Chapter 13 bankruptcy can make sense:
Job Loss – Finding a new job may require many months of searching, and in that time, bills can pile up. Consolidating debt under a Chapter 13 filing can stop creditor harassment and provide you with a solid plan for dealing with your debt until you are back on the job.
Illness or Injury – If you have a number of medical bills that you cannot afford to pay, Chapter 7 may be an option for you since medical bills are considered unsecured debts.
Foreclosure – Filing bankruptcy in Nebraska can help stop foreclosure proceedings and keep you in your home.
Divorce – A divorce can mean that debts as well as assets are evenly divided between two spouses – and sometimes, one spouse cannot afford to shoulder the burden of their debt share alone. Getting some “breathing room” by filing bankruptcy can be a logical choice. And even though alimony and child support obligations are not dischargeable, arrears can usually be repaid via a Chapter 13 bankruptcy.
Debt – Whether you have excessive consumer debt because of a job loss or other income reduction, filing for bankruptcy can help you manage your debt.
You must meet different requirements to file for certain types of bankruptcy. For example, if you have sufficient income to pay off your debts through Chapter 13, you may not qualify for Chapter 7. Conversely, if you income is too low or your debts too high, you may not qualify for Chapter 13 because you would not have enough income to cover your repayment plan. A qualified Nebraska bankruptcy attorney can advise you of all your options, and guide you through the process.
Figuring out whether to file bankruptcy can be overwhelming. Contact Koenig│Dunne today and schedule your free consultation with one of our experienced attorneys.