How to Know if it is the Right Time to File Bankruptcy
Bankruptcy is considered an extreme decision by financial experts but taking this decision at the right time can offer you relief from several types of debt, provide you peace of mind, and help you in get back on your feet quickly. In order to gain maximum advantage, it is important that you choose an optimal time for filing your bankruptcy case. When is the right time to file Bankruptcy? Find out the signs below.
The following signs can help you analyze your financial circumstances. Look for these signs and know if it is the right time to file for bankruptcy.
Sign #1: You cannot work out a deal with your lender.
If you have run out of options and cannot work out a deal with the lender, you may consider contacting a bankruptcy attorney. Once you have filed a bankruptcy case, your creditors cannot make credit collection calls to you until your bankruptcy is in effect.
Sign #2: You are on a budget and have little or no income left after basic monthly expenses.
If you are unable to meet your monthly expenses, it may be time to consider filing a bankruptcy case.
Sign #3: You failed in finding help from credit counselors.
If you contacted a consumer credit counselor to negotiate with your lenders and to design a more realistic budget, but it made little or no impact on your financial situation, then you should better start knowing the differences of various bankruptcy chapters. Know the laws, contact an attorney, and choose a bankruptcy chapter appropriate for your situation.
Sign #4: You are unemployed or in financial trouble for more than six months.
When you file a bankruptcy case, the court not only looks at your current income, but also considers your income of at least past six months. So, bankruptcy is a good option for you if you have been in financial troubles for more than six months and are unable to find a job or a consistent source of income to pay your bills and debt.
Sign #5: Your property is about to be repossessed or foreclosed
If you in danger of foreclosure of your home, seizure of your business assets, or repossession of your car, you should immediately contact a bankruptcy attorney and know what kind of properties are exempted on filing bankruptcy. Know your options and file a bankruptcy case so that you can keep your basic life necessities and valuable assets.
When considering filing for a bankruptcy, it is important that you first consult an attorney and explore your options. An experienced bankruptcy attorney such as Brock and Stout can analyze your financial state and provide you with an honest and accurate advice.
If you want to know if you qualify for a bankruptcy, call us at 1 (800) 884-9600 or contact us online and our attorneys will offer you legal advice.