Is it time for you to file bankruptcy? There are several categories that you may fall into. Learning about these will help you know if you are in a position where filing is the best solution.
Filing for bankruptcy is never an easy decision,
but in many instances, it is the right one. Knowing what signs to look for in your own personal finances will help you know whether or not it is the right time for you to file. If it is, consider using an attorney to assure that you do everything accurately.
When Filing Is Not Needed
If you are able to pay your bills on time each month, have insurance and assets to protect yourself, and have no debt on your credit card, then you do not need to even consider filing. Most people who are in this position would have no reason to think about this process to begin with, so chances are this does not describe you.
There is another group of people who do not yet need the protection bankruptcies provide. These are people who have some credit card debt and secured debt, struggle to save money regularly, and have worries about losing their jobs. They may have trouble paying all of their bills on time each month. In this scenario, you do not necessarily need to file, but you do need to start making some changes so you can start paying your bills more faithfully and start paying down your debt.
When Filing Is an Option
It is an option, but not a necessity, when you have experienced a difficult life change, such as a job loss or death in the family, and have started to miss payments on your debts. When you have few or no assets left and the debt collectors are calling, you may want to consider bankruptcy. People in this situation often have no insurance, which would make a medical issue a financial disaster. This is the time to consult with an attorney or start negotiating with your creditors. You may be able to work your way out of the situation, but you may not.
When Filing Is Necessary
For some people, bankruptcy is a necessity. When you reach the point where you are delinquent on at least one bill, have to rely on your credit cards to pay your other bills, or have serious debts, like medical bills that you have no way to repay, you need to start a conversation with an attorney. There may be alternatives out there, but it is likely time to consider filing.
At some point, a debtor may reach a position where he can no longer negotiate with creditors and are in danger of having all of their assets repossessed. Wage garnishment and other collection actions can make life incredibly difficult, if you are employed, and unemployment can make caring for your family while struggling with debt collectors almost impossible. If you have reached this point, you need to call a bankruptcy attorney right away. The longer you wait, the more stressful and financially impossible your situation will become. In this scenario, filing provides very real relief so you can begin rebuilding your financial situation.
