When is it a good idea not to file Bankruptcy?

Benefits of filing Bankruptcy

Perhaps the best way to start this post is to lay out the reasons why one would want to file bankruptcy. In a Chapter 7 the benefits are discharging all of your unsecured debt and in a Chapter 13 the benefits can range from saving your house from foreclosure and your car from repossession to consolidating all of your debt. Filing any chapter of bankruptcy will place on automatic stay on any civil actions pending against you and prevent or stop garnishments or attachments.

What should you do if any of the benefits previously discussed don’t apply to you?

The answer to this question is not an easy one. For example if you are current on all of your bills and current on your mortgage and car payments and want to retain your car and house but you will have no income or just lost your income-what should you do? If you file a Chapter 7 bankruptcy and then three months after your discharge are unable to continue to make your mortgage payments you have placed yourself in a difficult situation. You can’t file Chapter 7 bankruptcy for another 8 years and so you’ve limited yourself to a Chapter 13 making payments you’ll likely be unable to afford.

If you are unsure whether to file bankruptcy because you’re not sure if you will benefit from a discharge, contact Dailey Law Offices today for a free consultation.


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