Black and Buono Blog

Unfortunately most people who seek credit counseling or who are facing bankruptcy look for help when it is already too late. Only you know your situation, and if you are not sleeping at night, if you are unable to pay any of your bills or mortgage payment, or if you are only making the minimum payment on your credit cards, or if you are borrowing money from retirement plans there is no better time to seek out help.

First and foremost, it is important that you not be embarrassed. Finding a solution to your financial situation is far more important. Keep in mind that there are many politicians and well know business people who have filed for bankruptcy.

For individuals facing bankruptcy, there are two main types, Chapter 7 and Chapter 13, and both require credit counseling. Chapter 7 is straight liquidation. This involves selling the debtor's nonexempt property to pay off the debt and it is more difficult to file. Chapter 13 is a repayment plan with a debt limit. It is best for those with a regular income with which to pay off their debts.

It is important to consult a bankruptcy attorney before filing for bankruptcy protection because there of course you have bankruptcy questions. There are many things that are not exempt or erased with a bankruptcy filing. Some of these items are alimony, support, student loans, drunken driving judgments or debts from fraud.

When should I file for bankruptcy? The best answer for this is to file when you have exhausted all other options or if you simply owe too much to pay back.

If you find yourself meeting some of the above criteria, get in touch with a bankruptcy attorney who can help you explore if this is the right option for you.