Is Bankruptcy Right for You?

Life can sometimes toss a wrench in your plans, and you might find yourself grappling with the idea of bankruptcy just to get back on track. It’s understandable if you’re feeling more than a little stressed right now, but WorkMoney is here to lend a hand.

Through our partnership with Upsolve, we can set you up on a chat with an expert on bankruptcy law. During this chat, Upsolve will help you understand if bankruptcy is a viable option given your financial situation. Remember, this chat isn't you committing to anything. In fact, these pros are so good at what they do, they may even suggest other ways to safeguard your hard-earned assets without filing for bankruptcy at all.

Why should you care about bankruptcy?

This friendly conversation can be your first step to getting a grip on your options and making smart money decisions. You'll get to discuss the different types of bankruptcy, understand what's at stake, and figure out which course suits you best, all without any judgment – these folks are here to help untangle your financial knots, not tie them tighter.

The legal expert you'll chat with can take a look at your finances, tailor advice to your needs, and suggest alternatives, like tweaking your loan terms. They can help you pick between a Chapter 7 or Chapter 13 bankruptcy, which treats your debts in different ways. And, if bankruptcy isn't the right fit, or if you'd rather sidestep it, they'll also talk about other solutions like debt consolidation or credit counseling.

We at WorkMoney get it – taking that first step can feel like climbing a mountain. That's why we're helping you find a friendly bankruptcy pro through our partner, Upsolve.

What sort of questions will they ask?

Ready to chat? Brace yourself for some pretty personal and financial questions. These help your friendly bankruptcy expert really get to grips with your situation. They'll want to understand why you're thinking about bankruptcy. Is medical debt breathing down your neck? Has a job loss left you high and dry? Or is credit card debt becoming a mountain you can't climb?

Some topics you might chat about:

• Your marital status

• Your children, if you have any

• Your earnings

• Your income over the past six months

• If you run a business

• Your assets – a house, a car, that precious jewelry grandma gave you

• Recent property sales or transfers

• Unpaid taxes

• Your goals with bankruptcy

• Recent credit card use (heads up, using your card within 90 days before filing for bankruptcy might raise eyebrows)

What stuff should you bring along?

Your bankruptcy pro might ask you to bring along a few documents to your chat. This just speeds things up by giving them all the info they need to start your paperwork if you decide to hop on the bankruptcy train.

A typical document list might include:

• Copies of your driver’s license and social security card

• Your tax returns from the past two years

• Your bank statements from the last six months

• Your pay stubs from the last six months

• Recent statements for your mortgage and car loan

• A current estimate of your car’s value

• Recent statements from retirement and investment accounts

• If you're separated or divorced, a copy of your marital settlement agreement

Does this chat come with a price tag?

No! This initial chat won't cost you a penny. It's all about getting you up to speed with the process and helping you figure out if bankruptcy is the right money move for you. Now, when it comes to actually filing for bankruptcy, there are some fees involved, like legal and filing costs.

Submitting a bankruptcy petition and other sundry fees usually cost between $300 and $400, so make sure to squeeze these into your budget. Don't forget about the extra costs, like mandatory credit counseling and bankruptcy courses, which can cost between $10 and $50.

What questions should you ask?

While your bankruptcy pro will share heaps of info during your chat, it's always a good idea to have a few questions ready to make sure you're crystal clear about the whole process and how bankruptcy might impact your finances.

Some questions you might want to think about include:

• Should I go for Chapter 7 bankruptcy or Chapter 13 bankruptcy?

• Do I need to pay all the fees upfront, or can I make payments?

• Is there any chance of waiving some fees?

• Will I keep my house and car?

• How will this hit my credit score?

• Will I hang onto my bank accounts and other belongings?

• What's included in your fees?

• How long is the filing process?

• Which debts will my bankruptcy wipe out?