Should I file for Bankruptcy?

Whether to file for bankruptcy is a very important decision.

Some people find it helpful to file a bankruptcy case when they cannot pay their bills and they do not think they will be able to pay their bills in the near future. Some people file because their financial situation is causing them emotional distress or depression, or because they would like to free themselves of debt now and have their income and property to themselves in the future.

Some people do not have any property over and above what the law allows them to keep, even if they do not pay their creditors. If this is true of you, then you may not need a bankruptcy in order to protect your property.

Other people are have a window of opportunity where the equity in their house is below the exemption limit and their monthly income is below the Mean’s Test requirements to file.

We strongly recommend, however, that you talk to a lawyer before filing for bankruptcy. 




Considering Bankruptcy Checklist

If several of the following apply in your situation, you might consider bankruptcy:

• your wages or your bank account have been garnished

• most of your debts are Unsecured Debt like credit card bills, hospital or doctor’s bills, or personal loans etc.

• your total debt, not including your car or house loan, is more than you could pay, even over five or more years
• your mortgage lender has threatened or started foreclosure proceedings against your home

• collection agencies are calling you at home and/or at work

• your payments are more than 30 days behind on more than one bill

• there are lawsuits pending against you

• you have high medical bills not covered by insurance

• you owe income taxes that you are currently unable to pay

• you have few assets

• you have little or no savings

• you have had property repossessed (such as a vehicle)
• your mortgage lender has threatened or started foreclosure proceedings against your home

People who have had their wages garnished can especially benefit from a bankruptcy because the bankruptcy will stop the garnishment and could potentially help you get some of the garnished money back.

A law passed in 2005 makes it more complicated for some people to file for bankruptcy and to be freed of past debts. Most people, however, can still file for bankruptcy and free themselves of past debts.

You should talk to a lawyer before deciding whether to file for bankruptcy. Each bankruptcy case is unique and your lawyer can tell you what will happen to you, your debts and your property in bankruptcy.

To schedule a free consultation, please call Hedtke Law Firm today at our Upland office at: 909 579-2233 or Chino office: 909 457 0183 or Moreno Valley office at: 951 746 1722.