Should I declare bankruptcy?
If you cannot pay your bills, bankruptcy could be an option. If you can negotiate with creditors to come to a mutually agreeable resolution, this is generally a better option. If you are considering bankruptcy, talk to a competent bankruptcy attorney. It is important to get good advice so that you can take steps to solve your current problems without unnecessarily jeopardizing your future. The bankruptcy laws have changed over the past few years making it harder to discharge your debts. Under chapter 13 bankruptcy, you will receive protection from creditor collection activity in exchange for a stringent payment plan monitored by the trustee. Under chapter 7 bankruptcy, you will lose all nonexempt property as it will be sold and the cash will be distributed to creditors. You generally will not qualify for chapter 7 if you have substantial income with which to pay your debts.