Bankruptcy: when to talk to an attorney
Bankruptcy is a court process with long-lasting effects on your credit. For some people, it can still be the right answer.
The two common types
Chapter 7 requires passing a means test. Chapter 13 sets up a repayment plan over three to five years and can let you keep property.
What's required
The FTC says you must get credit counseling from a government-approved organization within six months before filing. Expect filing fees and attorney fees too.
Getting advice
Bankruptcy depends on your state's laws and your assets. A consultation with a licensed bankruptcy attorney is the best way to find out whether it fits. We don't provide legal advice.
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Questions
Is bankruptcy worse than debt settlement?
Not always. They carry different risks, and the better choice depends on your debt, income and assets. An attorney can compare them for you.
Do I need counseling first?
Yes. The FTC says counseling from a government-approved organization is required within six months before filing.