Personal bankruptcy questions

If you are overwhelmed with debts that you are finding it increasingly difficult, or impossible to repay, you may be considering filing for personal bankruptcy. Although there are some other alternatives, personal bankruptcy may be the best option for you if you meet the following criteria:

• Your income is less than the average income in your home state.
• You are faced with an overwhelming financial burden because of circumstances beyond your control, such as death of a breadwinner, unemployment, astronomical medical bills, or divorce.
• Your quality of life has become terrible because of your indebtedness.
• Most of your debt is in the form of unsecured debt, such as credit cards and unsecured personal loans.
• You have no assets or limited assets.
• You have never filed for bankruptcy before.
• You have demonstrated a good-faith attempt to repay your indebtedness.

If you are considering filing for personal bankruptcy, you can expect to make a total declaration of all income and assets; you can expect to provide documentation for all indebtedness; you can expect to provide copies of all bills like utilities and mortgages and phones going back several months or even years; you can expect to attend credit counseling classes; you can expect to pay about a thousand dollars or more; you can expect to need the services of a professional; you can expect it to take six months or more from the time you file until the time your debts are discharged; you can expect to have certain bills that will not be discharged, such as student loans that are backed by the government, child support payments, and any back taxes you may owe; you can expect to face a judge who will require you to swear under oath that everything in your file is true and correct; and you can expect to have your credit score suffer dramatically.