You want to get married to your long-term girlfriend, but you have a problem. You’re swamped with debt, and you don’t want your life together to start out with thousands of dollars you can’t afford to pay back.
One option you may want to look into is Chapter 7 bankruptcy. While bankruptcy can have a negative impact on your credit score, you probably already know that it’s decreasing over missed payments. So, the real question is, when is it time to finally seek bankruptcy?
Signs it’s time for bankruptcy
Bankruptcy isn’t appropriate every time someone is in debt, but it can be beneficial for some people. If you have:
- Missed payments
- Lost a job
- Can’t make ends meet
- Don’t earn enough to make full monthly payments
…then those signs may mean that it’s time to look into bankruptcy.
Your attorney can talk to you more about Chapter 7 or Chapter 13 bankruptcy. You may be able to seek either Chapter 7 or Chapter 13 bankruptcy, depending on your circumstances at the time of your application. Chapter 7 bankruptcy may ask that you liquidate certain assets to pay back what you owe, though some people are able to go through it using exemptions to keep the assets that they have. Chapter 13 allows you to pay back what you owe over time with payments each month that are determined by your creditors and the court. That kind of bankruptcy lasts for three to five years, depending on your circumstances.
Our website has more on bankruptcy and how it could help you get your finances in order, so you can continue to enjoy the life you have and plan for your future.