Is it Time to File for Bankruptcy? What You Need to Know
On behalf of Bill Maddox
Is it time to declare bankruptcy? Before you file for bankruptcy, ask yourself if it’s time. Here’s what you need to know.
Nobody wakes up one day and decides to file for bankruptcy. For most adults, the decision comes slowly and over time. After weeks, months, or even years of struggling financially, you might realize that you’re ready to make a change and start moving forward with your life. The decision to file for bankruptcy is a very personal one. If you’ve been drowning in debt, you might be thinking about filing for bankruptcy. No matter how old you are or what type of career you have, the decision to file can be quite emotionally difficult. Most adults wrestle with this decision long before it becomes a reality. Before you finalize your decision, though, there are several things you need to understand.
First of all, keep in mind that bankruptcy isn’t always the answer. In some cases, consolidating your debt, paying off specific credit cards, or even talking with your lenders about debt reduction could be viable options. If you’re dealing with medical bills, for example, some hospitals may be willing to work with you on a payment plan. In some cases, they may even be willing to write off part of your debt. You should always attempt to find ways to work with your lenders before you file for bankruptcy. If it’s possible to move forward with your life without having to file, you may be able to save your credit score and avoid having a bankruptcy filing appear on your credit report.
It’s also important to understand that in many cases, bankruptcy can give you a fresh start. If you have been absolutely struggling with your debt and cannot seem to find a way to pay any of your bills, filing may enable you to start over with a clean slate. While you may have a difficult time rebuilding your credit or applying for loans after a filing, it’s important to understand that sometimes, the benefits outweigh the risks. If you cannot pay any of your debts, for example, it may be time to consider filing. Furthermore, after you do file for bankruptcy, it’s absolutely possible to start rebuilding your credit and working on improving your credit score. You aren’t doomed to a life with a poor score.
Make sure you understand what kind of debt is covered when you file for bankruptcy and what kind of debt isn’t covered. Many adults file for bankruptcy because they have incredible amounts of medical debt, for example. Others have trouble with student loans. The type of debt you have may or may not be wiped out when you file for bankruptcy, which means it’s very important to talk with your attorney about the specific types of debt that you have. Your lawyer can help analyze your financial situation and talk with you about what your choices are.
No matter what type of debt you have, make sure you call for a consultation. Our team wants to help you move forward with your life and would love to talk with you about your options. Call now to schedule an appointment.