Information About Consumer Bankruptcy

The American Bankruptcy Institute is an incredible organization which helps educate bankruptcy professionals and consumers with regard to current bankruptcy news and information. It’s contributors are some of the most well-educated bankruptcy professionals in the country. Although I have been a Maryland bankruptcy lawyer for almost 20 years, I learn something new every day. I am thankful to the people who post such great information for all of us to see. An especially interesting article that I think you might enjoy is as follows:

Should I file for bankruptcy?Whether to file for bankruptcy is a very personal decision.

Some people find it helpful to file a bankruptcy case when they cannot pay their bills and they do not anticipate having the ability to pay their bills in the near future. Often, people file because their financial situation is causing them emotional distress or depression, or because they would like to free themselves of debt now, if legally allowed, and have their income and assets to themselves in the future. Also, some people may find that a bankruptcy is worth filing even if they do lose some of their assets.

Some people do not have any assets over and above what the law allows them to keep, even if they do not pay their creditors. If this is true of you, then you may not need a bankruptcy in order to protect your assets.

Throughout this section of the Consumer Bankruptcy Center, we try to help you decide if bankruptcy is for you.

Considering Bankruptcy Checklist

If several of the following apply in your situation, you might consider bankruptcy:

Your wages have been garnished or your bank account has been attached
Most of your debts are unsecured debts like credit card bills, hospital or doctor’s bills, etc.
Your total debt, not including your car or house loan, is more than you could pay, even over five or more years
Collection agencies are calling you at home and/or at work
Your payments are more than 30 days behind on more than one bill
There are lawsuits pending against you
You have high medical bills not covered by insurance
You owe income taxes that you are currently unable to pay
You have few assets
You have little or no savings
You have had property repossessed (such as a vehicle)
Your mortgage lender has threatened or started foreclosure proceedings against your home.
People who have had their wages garnished can especially benefit from a bankruptcy because the bankruptcy will stop the garnishment and could potentially help you get some of the garnished money back.

A law passed in 2005 makes it more complicated for some people to file for bankruptcy and to be freed of past debts. For most people, however, bankruptcy relief remains available.

You should seek advice of competent bankruptcy counsel before deciding whether to file for bankruptcy.

Call or e-mail us anytime at any of our phone numbers on the website or e-mail us at We are always available to offer you a free consulutation and evaluation of your financial situtation.

David L. Ruben