3 Signs You Should File Chapter 7 Bankruptcy

Even though many people think of filing bankruptcy as being a bad thing, it does not have to be a bad thing at all. For many people, it can actually be a very positive thing. Of course, it's not for everyone, but depending on the specifics of your financial situation, it might be right for you. These are three signs that it might be time for you to meet with a bankruptcy lawyer so that you can find out more about filing chapter 7.

1. You Have a Ton of Debt

For one thing, since chapter 7 bankruptcy is designed to help you wipe out some or all of your debts, it is generally only a good idea for people who have a high amount of debt. If you only have a little bit of debt, then it might not be worth it to pay a lawyer, take a hit on your credit score and go through the chapter 7 bankruptcy process. If you feel as if you are swimming in debt from credit cards, loans and more, though, then it might be a good way for you to take control of your financial situation.

2. You've Tried Other Options for Resolving Your Debt

Of course, there are other options other than just bankruptcy for dealing with your debts. For example, you may be able to call and negotiate with your lenders for lower payments, and you might be able to consolidate your debts into a lower-interest loan with a smaller monthly payment obligation. If you have already explored these options and have not been able to get your financial situation under control, however, it might be time to talk to a lawyer to see how bankruptcy can help you.

3. You Don't Have a Lot of Assets

One thing that you need to understand about filling bankruptcy is the fact that it's generally not a good idea for someone who has a lot of assets. Basically, if you own property that is paid for without a lien or have other assets, there is a good chance that they will be sold. Then, the proceeds will be taken to pay off some of your creditors. Of course, you will generally be able to keep certain assets, but this might not be the case for all of your assets. If you are unsure of what you may and may not be able to keep if you file chapter 7 bankruptcy, it's a good idea to meet with a lawyer so that he or she can give you information that is relevant to your situation.