Is Bankruptcy the Best Option for Me?

It doesn’t matter if you have a job or not; every qualifying situation is different. It’s always best to talk with an experienced bankruptcy attorney to learn how the process may or may not be helpful. Here are a few brief points to consider.

1. At its most basic, bankruptcy eliminates the legal obligation to pay some or all of your debts (called a discharge of your debts). It also has the added effect of stopping harassment by creditors and debt collectors.

1. Bankruptcy can help you to meet your basic needs, by restoring or preventing the termination of utility service, stopping foreclosure on your home or prevent repossession of your car.

1. Not all debts can be discharged in bankruptcy. Obligations to pay student loans, mortgages, tax debt and court-ordered payments (such as child support) are still valid during and after bankruptcy. But by discharging other debts through bankruptcy, it may be much easier to make these other payments on time.

1. Employers cannot discriminate against you in employment just because you have gone through bankruptcy, according to federal law.

1. If bankruptcy is right for you, then your credit score is usually pretty bad to begin with. Although bankruptcy can negatively affect your credit score at first, it is often what’s needed to begin to rebuild credit. After bankruptcy, it is not impossible to get credit again. Because your existing debts have been eliminated or restructured, creditors have greater assurance that they will be paid back, creating more confidence in you as a borrower.

If you have trouble making ends meet due to high debts, and you feel debt elimination would benefit you greatly, then maybe you are a candidate for bankruptcy. Or perhaps the debt repayment option offered by the State of Wisconsin Chapter 128. (Chapter 128 does not discharge debts, but does offer some of the same protections from creditors, while establishing a structured payment plan.) Whatever your situation, an experienced attorney practicing in bankruptcy law can discuss your resources and needs, and recommend a course of action to bring you greater financial stability.