These factors are:

• Current income:In a Chapter 7 case, how does your income compare to the state median income? In a Chapter 13 case, do you have a regular income? Will it be enough to sustain a repayment plan?
• Expenses:What are your mandatory monthly obligations? This can determine whether you qualify for a Chapter 7 case, or determine what your repayment may be in a Chapter 13 case.
• Assets:What is the current amount of your financial assets? Although most people lose no assets in bankruptcy, you need to determine which assets are protected or exempt from liquidation?
• Debt:How much debt do you have? How much is secured debt (such as your home)? How much is unsecured (such as credit cards)? Or, how much of your debt is really dischargeable?
• Prior bankruptcies: Did you petition for bankruptcy previously? Was it granted? How long ago?

Commonly known as a liquidation bankruptcy, Chapter 7 bankruptcy provides a way to liquidate your non-exempt assets, pay what you can to your creditors, and discharge the rest of your unsecured debt. The truth of the matter is that in a majority of cases there is no loss of property. The process is relatively swift, allowing you to begin rebuilding your financial stability rather quickly, but there are strict parameters for qualifying for this type of debt relief.

If your outstanding debt is more complicated than simple credit card debt, Chapter 13 bankruptcy may be the better option. This type of bankruptcy allows you to eliminate certain debts and restructure the remaining balance to more manageable monthly payments. Your accepted repayment plan usually takes three to five years to complete. Chapter 13 bankruptcy may offer some protection to co-signers and spouses as well as provide an opportunity to "cram down" an outstanding car loan to current market value. Deciding which option is best for you should be done with the assistance of a skilled bankruptcy attorney who can accurately assess your current and projected financial circumstances.

Sadly, it's very common. In recent years, creditors have become more bold and devious in their tactics. The AARP reports that debt collectors are not above posing as hospital admissions clerks, police officers, or even Facebook friends in order to harass their targets. Bankruptcy puts an immediate halt to creditor harassment. Once you file, creditors are legally prevented from contacting you. If they continue, they can be subjected to prosecution.

• You have had a recent successful bankruptcy file
• You have had a bankruptcy case dismissed within the last 180 days
• You have not taken an approved credit counseling course

The smartest way to find out if you should file for bankruptcy is to speak with our qualified bankruptcy lawyer. The circumstances that brought you into a financial crisis, your current amount of debt, and your available income all play a part in deciding which type, if any, could provide you with much needed debt relief.

At Denton Law Group, we don't recommend trying debt settlement or consolidations before speaking to an experienced bankruptcy attorney. Unfortunately, there are many unscrupulous agencies using high-pressure sales pitches to prey on individuals overwhelmed with debt. Often, their "plans" leave you in worse financial shape than when you started. If you file bankruptcy, however, you are protected under federal law. Creditors are legally mandated to obey the terms of the declaration.

Yes. It may be difficult at first, but in just a short time after filing for bankruptcy you will begin our 720 Credit Score program. If the program is followed properly, your credit score will improve and you shouldn't have any trouble qualifying for a loan that has a favorable interest rate.

No. The purpose of bankruptcy is to provide you a means to start over, not strip you of everything you own. Many items are considered as exempt and are legally untouchable by creditors. Household items, furniture, appliances, and clothes are usually not relinquished through bankruptcy.

Absolutely not! Plenty of hardworking people have experienced serious financial distress due to a job loss, unexpected injury, or other life-changing events. In actuality, declaring bankruptcy might be the most financially responsible decision you can make. Most people won't even know you filed for bankruptcy unless you tell them. Additionally, federal law forbids employers and student loan programs from discriminating against individuals who have petitioned for federal debt relief protection.