Is Bankruptcy Right For Me?

Filing for bankruptcy protection is an important financial and legal decision.

Chances are that you are like the overwhelming majority of people who work hard to keep their promises and pay their debts; needing to obtain a “fresh start” by filing bankruptcy may feel immoral or possibly even “illegal”. However, debt forgiveness is an important part of our western heritage, and bankruptcy is a basic privilege granted to us by the U.S Constitution.

The concept of debt forgiveness is as old as the bible. Deuteronomy 15:1-2 states: “At the end of every seven-year period you shall have a relaxation of debts, which shall be observed as follows. Every creditor shall relax his claim on what he has loaned his neighbor; he must not press his neighbor, his kinsman, because a relaxation in honor of the LORD has been proclaimed.”

The ability to file for bankruptcy protection is firmly rooted in the United States Constitution. Article 1, Section 8, which enumerates the powers granted to Congress, gives Congress the power “[t]o establish . . . uniform Laws on the subject of Bankruptcies throughout the United States.” Bankruptcy is the legal forum that is specifically created to balance the rights of creditors with the need to protect debtors. The establishment of bankruptcy was a cornerstone in the realization of this belief in economic fairness.

As a practical matter, a person’s need to file bankruptcy may be determined by the financial events that are taking place in his or her life. The bankruptcy test below consists of a series of “yes” or “no” questions that may assist in determining whether bankruptcy is right for you. While the “test” is not definitive, if you answer “yes” to two or more of the questions, please contact us to learn about the protections and benefits that bankruptcy can offer you.

Bankruptcy Test

Do you receive collection letters or telephone calls?

Yes

Do you avoid answering the telephone because you fear it will be bill collectors?

Yes

Is a bill collector threatening to sue you, or are you being sued for the collection of a debt or debts?

Yes

Are your wages or bank account(s) currently being garnished or seized?

Yes

Are you being threatened with the repossession of your car or truck, or has your car or truck been repossessed?

Yes

Are you being threatened with eviction from your apartment or rental home, or have you been evicted recently?

Yes

Are you in arrears on your first or second mortgage payments on your home, or has your mortgage lender threatened you with foreclosure?

Yes

Are you currently in foreclosure?

Yes

Are your essential services such as electric, gas, water, telephone, or cable being disconnected because you cannot pay the bill?

Yes

Have you been denied credit, or have you had to borrow money at a high interest rate or had difficulty getting approved for an apartment rental or even a cell phone because your credit is so poor?

Yes

Do you charge on credit essential living expenses like groceries, gas, and utilities out of necessity?

Yes

Can you only afford to pay only the minimum payments on your credit cards?

Yes

Are you applying for new credit cards or other new credit, either to cover essential living expenses or to maintain monthly payments on your existing debt?

Yes

Do you take out cash advances on your credit cards to provide you with cash to cover essential living expenses or to maintain payments on your existing debt?

Yes

Do you borrow from payday loan stores and pawnshops in order to get enough money each month to pay the bills?

Yes

Do you “juggle bills”, putting off paying one past-due bill so that you can catch up on another past-due bill?.

Yes

Are you frequently charged over-the-limit fees or returned check fees on your debit card or checking account?

Yes

Has the IRS levied your wages or bank account(s)?

Yes

If you answered “yes” to two or more of the questions, please contact us to learn about the protections and benefits that bankruptcy can offer you.