John A. Streby Attorney

Legally, you do not need a lawyer to represent you when you file for bankruptcy. It’s an official court proceeding and you have the right to represent yourself. However, most people opt to work with a bankruptcy lawyer when they file because the process is complicated. Filing on your own is risky because: • Mistakes can result in your case being dismissed • Even an honest mistake can make it look as though you were trying to commit fraud and you can end up in legal trouble in addition to failing to resolve your financial issues

There is no official age requirement for filing for bankruptcy. It’s a tool adults of all ages use to get back on their feet financially. There does tend to be certain periods in a person’s life when he or she faces a higher risk for financial difficulties. For instance: • Young adults often struggling financially because they are just entering the job market and earning low wages, and likely accumulated debt while in college. • Seniors tend to struggle more financially because many of them are on a fixed retirement income and medical issues tend to arise later in life.

Legally, there is no minimum amount of debt to file for bankruptcy. However, it’s important to consider how much debt you have when determining whether bankruptcy is in your best interest. There are options for dealing with debt that are not as drastic as bankruptcy and for many people, these tools will be more effective for resolving financial issues. If you feel you are struggling financially and bankruptcy seems as if it could be a viable option, it’s important to speak to a financial expert. He or she can review your situation and help you determine how to proceed.

Determining whether bankruptcy is right for you is a very personal decision. It’s important to have a financial expert review your situation and discuss with you the pros and cons. Bankruptcy might be right for you if: • You have fallen behind on your bills • Yare unable to afford monthly payments with no significant financial improvement on the horizon • You are considering borrowing from retirement savings to alleviate your debt Everyone who begins the bankruptcy process must participate in an educational program that helps them assess their financial situation and determine if bankruptcy is truly their best option.

The main difference between Chapter 7 and Chapter 13 is how assets are dealt with. • Chapter 7 results in the liquidation of any assets and the funds are used to repay creditors. • Chapter 13 provides protection for assets and debtors are given the opportunity to repay their debts over the course of several years through a court-approved payment plan. In most cases, people without many assets will choose Chapter 7 and people who have a steady income and assets they wish to protect will choose Chapter 13.

There are four different types of bankruptcy: • Chapter 7 and Chapter 13 are used by individuals who are struggling financially • Chapter 11 bankruptcy is used by businesses that are struggling financially, and in some rare cases by individuals • Chapter 12 is an option for farmers Chapter 7 bankruptcy is the most common type of bankruptcy to come to mind when someone says they are filing and it results in the discharge of all unsecured debts. Chapter 13, the second most common type filed by individuals provides a means by which to repay debt over an extended period of time.