If collection calls are coming each day and there is no money to pay those past due bills, it may be time to file for bankruptcy. Senior citizens and those who are unemployed may not have the resources necessary to pay their debts because they have little or no income to do so. In some cases, senior citizens who file for bankruptcy may be able to keep their home and most or all of their retirement benefits.
Individuals who are having trouble paying credit card or medical debt may want to consider filing for bankruptcy as a means to get out of debt. Most medical and credit card debt can be discharged through bankruptcy court. However, it is important to wait until all medical costs have been incurred. If new costs are incurred after filing for bankruptcy, those expenses are not part of the bankruptcy agreement.
It may be worth filing for bankruptcy if an ex files for bankruptcy. In this scenario, an individual generally would have to pay whatever outstanding debt balance may exist. By filing for bankruptcy after an ex-spouse does, or after anyone who was a joint holder of a credit card or mortgage debt files, the debt may be fully discharged. Creditors could no longer ask the other party to the debt to pay the remainder of it.
Bankruptcy may be a great way to obtain debt relief while also obtaining relief from creditor actions such as foreclosure. Those who are thinking about filing for bankruptcy may wish to talk to an attorney prior to this. An attorney may be able to tell a debtor which type of bankruptcy that he or she may be eligible for. Debtors who have filed in the past eight years may only be eligible for reorganization.