How Do You Know When You Should File Bankruptcy?
I got the idea in the back of my head that the very last thing any person wants to do is file for bankruptcy protection. When they get around to finally calling their attorney, on average, they have waited 2 to 3 years longer then they should have before filing a bankruptcy.
During this time they haven't answered their phones or jump when it rings, haven't opened mail, dreading when the doorbell rings and maintain their financial secrets from friends and family.
There is no bright line rule for determining when a person should file for bankruptcy protection. I have attached a list of indicators when filing a bankruptcy is probably in a person's best interest.
- Home foreclosure or car repossession. Your credit is already destroyed by now anyway. Also the creditor is bound to file a lawsuit in a year or two for the deficiency from the resale of home or car, if there is any.
- Garnishments or a tax levy. If you are unable to pay a creditor unless forced to do so by a court order, usually means then other creditors cannot be paid.
- You have stopped paying bills. If you cannot pay the debt, why leave it hanging over your head for future problems.
- Have more debt then you can foreseeable pay off or borrowing money to pay off loans.
While your credit still may be ok, if your debt structure is to large to pay off in the foreseeable future all you're really doing is moving furniture around on the Titanic. Ask yourself where your ship is really going.
The Law Firm of Gene Turnwald, P.C. will help you determine the best solution for your financial situation. If you are seriously considering foreclosure, contact Lansing Bankruptcy Attorney, Gene F. Turnwald, for a free consultation. Mr. Turnwald may be reached at (517) 347-6700 or through the firm's website, http://www.gturnwald.com/
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Attorney Thomas E. Brownfield, Southern California Bankruptcy Attorney, breaks down the facts of Chapter 7 Bankruptcy. He outlines the pros and cons of Chapter 7 Bankruptcy helping you make a better decision regarding Bankruptcy and your current situation. You'll find that you don't have to give up everything to file bankruptcy.
You may be able to lower your cost of credit by consolidating your debt through a second mortgage or a home equity line of credit. Remember that these loans require you to put up your home as collateral. If you can't make the payments — or if your payments are late — you could lose your home.
Students from both private and public universities all over the country may also provide low cost or free advice. The sessions will only achieve directing clients to the right legal path in filing the right papers. Note that with the new bankruptcy laws taking into effect making the bankruptcy filing process more difficult than usual, an experienced bankruptcy attorney will be worth your money.
Many people who enter the bankruptcy process worry about the fate of their credit. This is actually unnecessary as the bulk of credit damage happens before the bankruptcy process is even initiated. While no one wants the added hassle of rebuilding their credit after resolving debt troubles, doing so can put you leaps ahead of others in the credit game.
Americans are now filing Chapter 7 or 13 Bankruptcy to get their debts under control. Bankruptcy in itself is designed for debt elimination. Chapter 7 bankruptcy functions to cancel out unsecured debt such as utility or medical bills, credit card, etc. Chapter 13 Bankruptcy on the other hand is designed to give individuals more time in repaying all their debts.
Filing for bankruptcy is good news whenever you are struggling with your credit card debt, mortgage or medical bills. Bankruptcy laws help families and individuals in their debt struggles. You have two options on how to deal with your debt problems, Chapter 7 (debt elimination) and Chapter 13 (reorganization). Always remember that you can regain credit again after successfully filing your bankruptcy.
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Timeline for unpaid property taxes leading to foreclosure.
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