If you’re struggling to make it from paycheck to paycheck because you’re paying credit card bills, medical bills, very old taxes or other claims that could be discharged in bankruptcy, or if your wages are being garnished from a judgment, then getting out from under those debts in a Chapter 7 or Chapter 13 bankruptcy case will help you and your family save cash to help you get back in the black.
But it’s not all good news: if you haven’t paid anything on the old bills and you’re still struggling to pay survival bills like the mortgage, the car payment, utilities, and just to put food on the table because there’s not enough cash, bankruptcy by itself won’t increase your income and therefore may not help you, except to stop the nagging phone calls, letters and lawsuits. For this reason it may not pay to file bankruptcy if you’re not working because there’s no income for you to protect from your creditors. In addition to the peace of mind that can come from just making your creditors go away, the real benefits of bankruptcy are to give you protection from your creditors to hold onto your income and your assets.
