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Should I File Bankruptcy ?

Cheyenne Bankruptcy Lawyer

Each situation is different. You need to consult with an attorney to know what’s right for you. Hours on the internet searching advice from forums are no substitute for specialized advice when deciding to file bankruptcy. Lund Law Office offers a low-cost confidential consultation with an attorney to determine the level of assistance you may need.  Call us to set up an appointment.

You may have alternatives outside of bankruptcy available to you. You also need a thorough analysis to determine which chapter of the bankruptcy code your case will be filed under, and what assets you can keep after filing. But the right question is the first question: “should I file bankruptcy?”

Here are my recent estimations, based on case law and experience when helping people decide if they should file bankruptcy or not: the decision to file is highly dependent on the income and expenses of your household and the nature and amount of your debt. Please note I’ve seen most of these situations firsthand.

 

Should I File Bankruptcy?

PROBABLY

  • Your unsecured debt is over 40% of your gross income (before taxes are taken out)
  • You owe child support arrears but can pay them back over five year period
  • You are getting garnished and have already maxed credit cards and pay day loans
  • You lost your job, the debt is mounting, but a new job is on the horizon
  • You owe income taxes and can realistically pay them off within a five year period
  • Your medical bills are gigantic, but you now have affordable health insurance for the foreseeable future

 

Should I File Bankruptcy?

SLOW DOWN (This is where you *really* need an experienced bankruptcy lawyer)

  • You transferred property to a relative so the spouse wouldn’t get it in the divorce
  • You transferred the cabin to your brother not thinking you would ever file bankruptcy
  • Your debt is old and past the statute of frauds, or personal income taxes are almost three years old
  • You just received your big tax refund and paid back family and friends with it
  • You have medical problems and insurance isn’t helping in the near future
  • You owe your spouse for alimony, or for marital debt, from the divorce
  • You lost your job, the debt is mounting, and there are no new jobs in sight
  • You live on social security and have no assets
  • You’ve been paying relatives back on loans that they have, or you co-signed with them
  • You’ve filed bankruptcy in the last eight years (with some exceptions involving a Chapter 13)
  • Most of your debt is business debt and you think you should file bankruptcy for your business
  • You plan on filing bankruptcy before you settle your personal injury case
  • You might receive an inheritance
  • You share a bank account with relatives or non-spouses and help support them
  • You are married but plan on filing with your spouse
  • You recently took out a 401k loan and gave it to (often help) friends and family
  • You recently took a mortgage out on your property and used the money to pay credit cards or family

 

Should I File Bankruptcy?

CHAPTER 13, or OTHER DEBT RESOLUTION STRATEGIES ARE NEEDED

  • Most of your debt is from student loans
  • Most of your debt is from restitution for fraud or criminal behavior in other cases
  • Most of your debt is in the form of payroll or withholding taxes (I can help you handle property or income taxes)
  • You have astounding child support arrears
  • Your only debt is the mortgage arrears and you are underemployed and upside down on the house

 

Should I File Bankruptcy?

A CONSULTATION WITH A CRIMINAL LAWYER IN CONJUNCTION WITH YOUR BANKRUPTCY LAWYER IS RECOMMENDED IF YOU DON’T DISCLOSE THESE SITUATIONS BEFORE YOU FILE, AND EVEN THEN, YOU HAVE TO REASSESS ON WHETHER YOU SHOULD FILE

  • You recently took out pay day loans and maxed out credit cards, knowing you would file bankruptcy on them (possible crime)
  • You transferred the cabin to your brother innocently thinking that it would “stay out” of the bankruptcy (can settle, usually)
  • Insurance proceeds came in for the loss of the house or the car but you didn’t pay the bank on the loan (possible crime)
  • You intentionally sold your fleet of Harleys and deposited the proceeds into your 401k (can settle, usually)
  • You took student loans out for somebody other than yourself or used the proceeds to help with other people’s debt (possible crime)
  • You plan on hiding assets and deceiving the bankruptcy court, trustee and your lawyer (bankruptcy fraud)

For many people I’ve helped, some of the reasons listed above might conflict with whether you should file or not.  I can identify these issues and help you answer ” should I file bankruptcy? ” in a more in-depth consultation by appointment if necessary.