When Should You “Go Bankrupt”?

If you are $10,000 in debt, should you file for bankruptcy in Illinois? $20,000? You can file for bankruptcy in Illinois whether you are in debt a hundred dollars or a million. The bankruptcy law doesn’t require a minimum amount of debt. The real question is this: Should you file for bankruptcy just because you can? The answer to that question – like so much else in the law – is, “It depends.” If you are buried in debt, what you need to do is to discuss your financial situation, your legal rights, and your alternatives with an experienced Chicago bankruptcy lawyer.

If your income is part-time or minimum wage, bankruptcy might be a genuine option for dealing with $10,000 worth of debt. But if you have a number of resources and several income streams, a $100,000 debt might not be enough to make bankruptcy your best option. All of your income, assets, and debts have to be considered carefully, along with the ramifications of filing for bankruptcy. There are no hard and fast rules. The decision of whether to file for bankruptcy must be based on a comprehensive assessment of each individual’s personal situation. Everyone’s situation is unique, so you really must discuss your own case with an experienced Illinois bankruptcy lawyer before taking any legal action or making any final decision.

If bankruptcy is right for you, a good bankruptcy lawyer can help you decide if a Chapter 7 or Chapter 13 bankruptcy is your best option. Your lawyer will work with you, assess your financial situation, and thoroughly explain the requirements and consequences of your bankruptcy. In the Chicago area, if you’re in debt and considering bankruptcy, the first thing to do is to obtain the advice you need from an experienced Chicago bankruptcy lawyer as quickly as possible.