According to the Judiciary Data and Analysis Office (JDAO) of the Administrative Office of the U.S. Courts, about 12.8 million consumer bankruptcy petitions were filed in the federal courts between 2005 and 2017. While few people want to file bankruptcy, for millions of Americans this last resort action provides an opportunity to clear their financial slate.

Would you be a good candidate for filing bankruptcy?

Let’s look at some of the indicators that bankruptcy may help you get a fresh start.

If your income does not meet your obligations…

In the wake of an unexpected crisis, such as an illness or being laid off, many people find themselves incapable of both paying debts and covering daily living expenses. Discharging debts via a bankruptcy can provide room for debtors to recover in the wake of such events. If your income no longer meets your obligations, you may be a good candidate for bankruptcy.

If it would take more than five years for you to repay your debts…

A debtor repays her debts in three to five years under a Chapter 13 bankruptcy plan based on her repayment ability in view of budgeted necessities. Whatever unsecured debt remains at the end of that period that was not paid is discharged. If it would take more than five years for you to repay all of your debts outside of bankruptcy, you might be a good candidate for filing Chapter 13, since any amount of unsecured debt remaining at the end of the plan is forever eliminated by the bankruptcy discharge.

If you’re concerned about losing valuable assets…

No one wants to lose a home or car due to financial hardship; however, without protection, these assets are in danger. Your home, car, retirement accounts, and other valuable assets can be protected from creditors when you file bankruptcy. If you have valuable assets to protect from creditors, bankruptcy can offer various forms of protection.

If you are facing legal actions from creditors…

In some cases, debtors become subject to lawsuits, wage garnishments, bank levies, and other legal actions. When you file for bankruptcy, an automatic stay is enacted, which stops these legal proceedings. If you’re concerned about legal actions being taken against you, bankruptcy is a viable option for protecting yourself.

Contact the Law Offices of Jeffrey Lohman today to learn if you’re a good candidate for bankruptcy.

“The Law Offices of Jeffrey Lohman, P.C. is considered a debt relief agency pursuant to federal law. We are attorneys who help people file for bankruptcy relief under the Bankruptcy Code.”