I lost everything because of a disaster. Will it help me to file bankruptcy?
- Bankruptcy can help when you have property to protect and a lot of debt that is past-due.
- Before filing bankruptcy, look hard at other ways to solve your problems.
- Call your creditors to see if they are giving extra time to people affected by the disaster.
- Look into consumer credit counseling.
- You may be able to work out a repayment agreement or file a claim of exemption.
- Read the information in the Bankruptcy section of this website.
- Try to wait until you have income coming in before filing bankruptcy.
- If you have enough new income, you can take advantage of the fresh start bankruptcy gives you. If you don't have enough new income, you get out of one hole just to fall into another.
- You may need to file bankruptcy if you have to stop a lawsuit, garnishment, foreclosure, eviction, or revocation of a driver's license.
Reviewed May 2014
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