US bankruptcy advice is available to all those debtors who are unable to pay their creditors. It helps in resolving the debtor’s debts by liquidating their assets to pay off their outstanding debts. Few bankruptcy laws also allow the freedom to the debtor to stay in business and to resolve the debts owed through the revenue generated.
Here we try to discuss few of the related bankruptcy rules and to provide answers to the various bankruptcy questions you have in your mind.
If you have decided to file for bankruptcy, then you should be aware that it can never take place in a state court; instead you need to file it in a federal bankruptcy court. The judge is the one who possess the decision making power over the bankruptcy cases. He would decide on the eligibility of the debtor for filing the case or not.
But before filing for bankruptcy you need to be sure whether you should be filing for it or not. Its common that all would be doubtful at one stage on whether they should go for it or not, as its one step which can either save your financial life or doom it. Here we have mentioned few guidelines for you to decide on whether you should actually go for it or not.
1. If your debt accounts to be twice your earnings then you need to file for bankruptcy.
This is a basic rule of thumb followed by many financial professional advisors because if your debts are just the double of your earning then there is actually no way on which you can consolidate them to get things right. .
2. If you are unable to keep aside at least $200- $210 monthly then you should file for bankruptcy.
This is a very tricky way to decide on your applicability for bankruptcy filing. Here you might need to work on some sort of passive incomes also to save and have more earnings in your wallet, but after all those if you still find that you are unable to put aside $ 200 then you need to take recourse to bankruptcy.
3. If you have more than $25,000 in unsecured debts, then bankruptcy is the answer for you.
If your average income is well above $40000 then this is not a major issue, but if you earn anywhere below $30000, you are in deep trouble. Bankruptcy would be the answer for you.
4. If your medical bills have stacked with out-standings of more than thousands, bankruptcy could be one of the solutions for you.
5. If you have tried with all the other relief options and obtained no success, bankruptcy is the answer for you.
If you find that you do not fall into any of the above mentioned five categories then you do have better options like debt consolidation, debt settlement, proper budgeting and credit counseling.