When Should You Declare Bankruptcy?

Posted on : June 26, 2017


After having a sit-down consultation with an experienced bankruptcy attorney, you’ll have a better perspective on what is involved in the process and the materials that you need to gather in order to initiate a petition. Bear in mind that while there are general guidelines for bankruptcy and other people may tell you their stories of how they decided to file, there is no perfect time for filing as this is based on your individual needs. There are good rules of thumb to keep in mind when you’re considering the bankruptcy process. 


If it will take you more than 5 years to pay off all of your debts, it may be time to declare bankruptcy and get the fresh start that you need. The bankruptcy code was set up to give individuals a second chance not to punish them.


If a combination of credit card debt, student loans, medical bills and mortgage debt has put you in a financial position from which you never feel like you’ll be able to recover, bankruptcy may be the best and the fastest answer to help you get results so that you can begin a new financial path. While there are other debt relief choices for those individuals who feel in over their head like a debt management program or attempting debt settlement, you will usually need up to 5 years to reach a resolution and neither one of these will guarantee that all of your debts will be settled and eliminated when you finish.


While there are some long term serious penalties linked with bankruptcy, since it stays on your credit report for up to 10 years, there are many emotional and mental benefits as well as financial if you can start over, when your debts are eliminated. Since the primary purpose for declaring bankruptcy for most people is to start all over again with a clean slate, your selection of the right bankruptcy attorney now means that you can have your questions answered prior to filing. The right lawyer can give you further information about the timeline you can expect for filing your bankruptcy and other pertinent issues that could affect the outcome of your case. If you don’t feel like you’ll be able to get on top of your financial situation, bankruptcy is your opportunity to start over.

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