When To File Bankruptcy
When to file bankruptcy is not the first question you should ask when determining how to go bankrupt. Rather, perhaps you should first ask, should I file bankruptcy at all?
The concept of filing bankruptcy … especially if you file bankruptcy yourself by doing a do-it-yourself bankruptcy and file online … in order to wipe out your debts or pay them over time, stop harassing collectors, and move on with your life debt free and happy has a certain appeal. It does happen like that for many people. But not always.
Let’s Take A Look At Some Of The Problems With Personal Bankruptcy:
Pers
onal bankruptcy should not be taken lightly, nor should it be used indiscriminately. There are often long-lasting effects. Credit is ruined. Bank accounts, credit cards and insurance are hard to get, if not impossible. Certain assets can be lost. Getting credit to purchase a vehicle or a home is tough, again if not impossible. Even getting hired for a job can be difficult because of a bankruptcy.
So, consider bankruptcy carefully. All possible bankruptcy alternatives should be closely evaluated. These might include selling your assets to pay your debt, doing a short sale of your home, getting a loan modification so your monthly mortgage payments are less, debt counseling, debt consolidation, or debt settlement. (Caution: there are many people and organizations offering to help you with these, but be very careful of scams. If you need a referral to an ethical resource, email us and we will be happy to refer you to a current source.)
That said, sometimes bankruptcy is the best option for you if, for example, you’ve lost your job or income, if you’ve been hit with high or unexpected medical bills, if your adjustable rate mortgage has reset to a higher payment, or if you have just too many bills that you cannot get caught up. In today’s rough economic times, the reasons are many.
The best answer as to when to file for bankruptcy is, “it depends.”
Here Are Some Questions You Should Ask Yourself:
- Have You Explored All Your Options, All Alternatives?
- Are You Sure Bankruptcy Is Your Best Option?
- Are You Stressed Out By Collectors To A Point You Can’t Handle It Anymore?
- Have You Committed Any Fraud Against Your Creditors?
- Do You Know If You’d Pass The Means Test For A Chapter 7 Bankruptcy?
- Do You Know If A Chapter 7 or Chapter 13 Bankruptcy Is Best For You?
- Have You Consulted With A Bankruptcy Professional?
The last point, asking if you’ve consulted with a bankruptcy lawyer or not is an important consideration when you ask yourself, “should I file bankruptcy?”
A bankruptcy attorney really is the best source to get specific advice for your situation. While a good bankruptcy lawyer is usually expensive, it is a cost that may pay for itself as your bankruptcy proceeds.
If you can not afford an attorney at all, there are often social programs that can help you.
Do it yourself bankruptcy options to file bankruptcy yourself and filing bankruptcy online options are becoming more and more popular these days as well, and may be worth exploring.
We strongly advise you to seek competent legal advice from a bankruptcy attorney as you determine when to file bankruptcy. We recommend the following resource: