Can Anyone File for Bankruptcy?

Struggling with debt can be incredibly difficult and stressful, especially when you have bills to pay. Many people are unsure whether bankruptcy will be beneficial to them and their financial situation. If you are in a financial pit, an experienced bankruptcy attorney can tell you that there are many ways in which bankruptcy can benefit you.

Rather than simply thinking about bankruptcy as a failure, it is healthy to think of the situation as debt relief! In essence, you are relieving the burden of debt when you make the decision to file for bankruptcy. You are basically stating that you do not have the ability to pay back the money you owe, which will end up negating the debt when you are granted a bankruptcy.

Qualifications for Bankruptcy

While it is true that anyone can file a petition for bankruptcy, there is a difference between a person who files a bankruptcy petition, and an individual who is granted bankruptcy discharge by a judge.

There are certain steps a bankruptcy petitioner must take before a court will grant a bankruptcy. The judge is essentially going to look at your occupation and the amount of income you receive on a monthly basis. The court is then going to determine whether you can pay back none of the debt, some of the debt, or possibly all the debt, that you owe.

The court will look at the amount of your disposable monthly income (“DMI”), which is the amount you have left over at the end of the month after your expenses are paid. Your income level and your expenses are going to determine the type of bankruptcy for which you qualify. Any person can file a petition for bankruptcy, regardless of their age, marital status, or income level; however, you should always consult the expertise of an experienced bankruptcy lawyer beforehand to see if filing is in your best interest.

The court is also going to look at whether you have attempted to hide assets. If you have hidden assets or have gone out of your way to elude a creditor, you could not only lose your bankruptcy status, you could face criminal sanctions. This kind of action is rare, however, and completely avoidable, so long as you are honest. An experienced bankruptcy attorney can help you avoid such pitfalls, so be sure to tell your lawyer everything regarding your financial circumstances.

Some people file for bankruptcy repeatedly in order to negate the debts they owe. This can turn into a somewhat serious problem if you do not consult with an attorney. If have filed for bankruptcy in recent years, it’s possible that you are no longer eligible for a discharge. To better understand your options, it is important to consult with an experienced bankruptcy attorney.

Hiring an Experienced Bankruptcy Attorney

If you think you may be filing for bankruptcy soon, make sure to get yourself a seasoned bankruptcy attorney. A highly qualified bankruptcy attorney is going to give you the best chance of being able to obtain the maximum amount of debt relief. If you are unable to pay back your debts and need to file for bankruptcy, you may have a difficult time trying to handle the case on your own.

Even though hiring a bankruptcy attorney may involve an upfront cost, you will always end up in a better financial position in the end.

Contact Throop Law at (804) 215-1515 to speak with our aggressive Richmond bankruptcy attorneys.

Categories