The fact that you need financial help is obvious. What’s not so clear is whether filing for personal bankruptcy is the best way to go. This is where help from one of the bankruptcy lawyers in Rockford, IL, will make a difference. To begin, the lawyer will help you answer these two important questions.
Can I Pass the Means Test?
The means test helps to determine if you have enough income or assets to manage your current debt. This is done by comparing your monthly income with that amount of specific types of monthly expenses. That allows you to arrive at what the court considers your monthly disposable income. As any of the bankruptcy lawyers in Rockford, IL, will confirm, little to no disposable income indicates that you do have the option of filing for bankruptcy protection.
Which Type of Personal Bankruptcy Would Work Best for Me?
Based on the results of the means test, one form of personal bankruptcy may be best. Assuming all of your debt can be discharged in a Chapter 7 action, most bankruptcy lawyers in Rockford, IL, will recommend this solution. If you do have some debts that cannot be discharged, the lawyer is likely to recommend filing a Chapter 13 petition. That essentially allows you to repay what’s called priority debts over a period of years and ultimately discharging any non-priority debt that remains at the end of the bankruptcy duration.
Is bankruptcy the answer for you? The only way to know for sure is to talk with an attorney. Together, it’s possible to determine if this is the way to go and which form of bankruptcy would work best.
Call the Crosby Law Firm or visit us to schedule a consultation and find out if bankruptcy is the right solution for you.
