When Should You File Bankruptcy?

What is a Bankruptcy Hardship Discharge?

Some people may wonder if there is a specific time you should file for bankruptcy protection.  Better yet, is there a good time to begin the filing process?  In most cases, it depends on personal circumstances in your situation. Each person has different needs and this makes each case unique.  Most who file are seeking to obtain the relief they need to manage their finances. In understanding whether you should file you should know how it will help you.

Talking with an experienced bankruptcy attorney is likely the first area you may want to review.  Other areas of concern that may influence your decision to file include the ability to pay bills, income, and getting clarity on which debts can be discharged.  Speaking with a bankruptcy expert can give clarity on whether you meet qualifications to file, how to protect assets from creditors, and other necessary actions you need to complete (credit counseling and financial management courses).

Filing for bankruptcy is an important step in gaining financial freedom, but you want to be fully informed about your options before finalizing details.  There are different bankruptcy chapters you need to review and know which one will provide the best solution for your situation.  If you are facing a lawsuit, bankruptcy may stop pending  legal actions including wage garnishment.

Other situations in which bankruptcy may be an option include pending repossession, foreclosure, or wanting the legal backing of the court system in developing a repayment schedule with affordable payments based on your income.  There are various details to review prior to filing but the more you know, the more likely you’ll receive favorable results.

Reference: http://www.nolo.com/legal-encyclopedia/considering-bankruptcy.html