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Questions to ask yourself before filing for bankruptcy

Many people throughout Illinois are no strangers to the complexities of bankruptcy. In fact, the state as a whole has struggled financially in recent years, and there have been rumors the state could be the first in the nation to file for bankruptcy, following in the footsteps of Detroit in nearby Michigan. 

Filing for bankruptcy is a big decision for any individual. However, it can be an immense help when a person becomes so inundated with debt there is no other way out. Before pursuing bankruptcy in earnest, it is paramount for people to ask themselves some questions first. If you answer "Yes" to any of the following questions, then it may be time to start looking into bankruptcy is the only viable option to get your finances back in order. 

Have you exhausted all other options?

Bankruptcy tends to be a last resort. You should first see if it is possible to pay off your debt on your own over time. You may want to consider selling off inessential assets and talk to your lenders to see if you can work out a different payment plan. You may also want to sign up for a credit counseling service that will help you better understand the financial world. 

Do bill collectors constantly call you?

You have a right to not undergo harassment from bill collectors. However, they can contact you at reasonable times to try to collect. They can also take you to court to garnish your wages if need be. When it gets this bad, bankruptcy becomes a viable option. 

Would bankruptcy eliminate your specific debts?

Bankruptcy cannot get rid of all kinds of debt. For example, people are unable to eliminate student loan debt through bankruptcy. However, if you have credit card debt or medical debt, then bankruptcy may help you. When you are at the end of your ropes, bankruptcy is there to help you. 

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