Should I File for Bankruptcy?

shouldifileforbankruptcyDeciding if Bankruptcy Is the Best Path

The decision to file for bankruptcy can be the best move of your life. Some people, though, may be better off not filing bankruptcy. Our attorneys have been helping people make the right decisions regarding this question since 1992. We can review your situation and determine whether bankruptcy is the best path for you.

If your decision is to go forward with a Chapter 7 or Chapter 13 bankruptcy, our firm will work diligently to obtain maximum debt relief for you. Contact us to schedule a free consultation.

When Is Bankruptcy the Best Solution?

Sometimes, the need to file bankruptcy is obvious, such as when you have received a foreclosure notice, your vehicle is at risk of being repossessed, you are being sued, or your wages are being garnished.

Also, a good rule of thumb for considering bankruptcy is if the total amount of your unsecured debts (such as credit cards, medical bills and personal loans) are 50% or more of your total net annual take home pay. If, for instance, you have $15,000 in combined medical bills and credit cards, and your net take home pay, is $30,000, you are probably in a danger zone and should strongly consider bankruptcy.

If the total amount should climb as high as 100 percent of your net annual take home pay, then you are literally “robbing Peter to pay Paul.” At that point, bankruptcy is probably inevitable.

Finally, if debt problems have reached the point where they may be affecting your health, marriage, family, job or relationship with others, bankruptcy is something you should strongly consider.

Every case is different. The Bankruptcy Clinic, PC can review your situation in a free consultation. If bankruptcy is right for you, we can file a Chapter 13 or Chapter 7 bankruptcy and work to obtain maximum debt relief for you.

When Should You Not File for Bankruptcy?

Bankruptcy might not be in your best interest if you can readily pay back your creditors on your own terms. Similarly, you may be able to sell or refinance an unencumbered asset, such as a piece of real estate to pay off the debts in full. Even in those situations, though, bankruptcy sometimes may still make good sense.

Bankruptcy is not a good option if your main reason for filing is simply to get back at someone or to file against someone out of spite. It may not be beneficial if you have engaged in some sort of fraudulent activity with your creditors or transferred property out of your name in an effort to evade your creditors. The bankruptcy laws were intended to benefit honest, but unfortunate debtors.

Finally, bankruptcy may not be your best option if your primary concern is with debts that are non-dischargeable, such as criminal restitution, child support and most forms of student loans.

The Bankruptcy Clinic, PC can review the specifics of your situation and help you make the right decision. We will give you an honest, confidential assessment regardless. If bankruptcy is not in your best interest, we will tell you.

Free Consultation With an Attorney

For a free consultation with a lawyer from the Bankruptcy Clinic, PC about whether bankruptcy is right for you, call 888-522-6578 toll free or contact us online. We have offices in Carbondale, Marion and Mt. Vernon, Illinois, to serve you. Evening and weekend appointments are available.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.


Phone: (618) 549-1100
Toll Free: (888) 522-6578
Fax: (618) 549-0141
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Mailing Address:
Bankruptcy Clinic, PC
811 W. Main Street
Carbondale, IL 62901


Phone: (618) 993-1300
Toll Free: (888) 522-6578
Fax: (618) 993-0713
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Mailing Address:
Bankruptcy Clinic, PC
206 W. DeYoung Street
Marion, IL 62959


Phone: (618) 315-6600
Toll Free: (877) 621-2894
Fax: (618) 315-6603
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Mailing Address:
Bankruptcy Clinic, PC
2006 Broadway
Mt. Vernon, IL 62864