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When to File for bankruptcy

How To Know When Bankruptcy Is The Best Option

Filing for bankruptcy is not a decision that should be taken lightly, after all, it can have some significant consequences for your financial future, your employment options, insurance, and even your ability to rent a property.

When reading all of the different negative options, it would be easy to conclude that bankruptcy is not a good choice irrespective of the situation. However, if that were the case, then thousands of people every month would never file for bankruptcy, and it simply wouldn’t be an option. Bankruptcy was created to help people in extreme financial hardship, who have literally no other financial alternatives, and whose situation has become desperate. Because bankruptcy is truly the last resort, there are certain steps that anyone contemplating filing must follow. These steps have been put in place to assess every situation independently.

You Have Attended Counselling

The first step on the path towards bankruptcy is to attend creditcounseling. This must be undertaken at a government-approved organization, with an accredited counselor. Their job is to assist you in assessing your personal financial situation because sometimes when you are deep in the middle of a problem, it can be difficult to make logical decisions due to the pressure of the situation. There are several different options available to anyone in a predicament like this other than bankruptcy. These include debt consolidation, or a modified payment/debt management plan. Thecounselor will walk you through each of the alternatives to see if another option is better suited to your circumstances.

These sessions can take place in person, online, or via phone, with the intention of helping you to work out a budget, and a plan of attack, which if followed would resolve your problems long-term. If the approved counselor having assessed your situation, concludes that bankruptcy is the preferred option for you, then the reality is that your situation is bleak enough that it merits applying for bankruptcy. 

Although bankruptcy is tough and the last throw of the dice for most people, it may be a better option than taking out a second line of credit, or a home equity loan, as this is a way of dealing with the symptoms rather than the problem. Taking out a second line of credit could also mean that you run the risk of a Chapter 7 bankruptcy further down the line, which could result in the loss of your home. The counselors are put in place for a reason, listen to their advice because it will be in your best interests. 

Ignoring The Problem Is The Worst Thing You Can Do

Financial problems are scary, and they are one of the main reasons for divorce in 2019. It can seem like a very tempting option to bury your head in the sand and hope that the problem will go away on its own. The reality, as we all know deep down, is that this won’t happen, and if anything the situation will only deteriorate. The best option is to seek advice from the experts, and tackle the problem as quickly as you can before the decisions are taken out of your hands.

Get A Piece Of Paper and a Pen

Sometimes a situation can be a lot worse than it seems because you have been lying to yourself about how much debt you are actually in. Alternatively with a little bit of planning and a well thought out budget, your situation may not be as bleak as you thought. Although a scary proposition, sit down in a quiet room, with nothing but a pen and paper, and list all of your debts. Then write down all of your assets and your monthly income. This will help you to examine your financial situation clearly. Write down every aspect of your finances, as that is the only way to ensure that you have a complete overview of the situation.

How Do I Declare Bankruptcy?

Essentially, there are two different ways an individual can declare bankruptcy. The first option is to take matters into their own hands and voluntarily file for bankruptcy. The alternative involves waiting anxiously for a creditor to approach the court and ask for you to be made bankrupt. If you can, it is a much better option to file for bankruptcy yourself, as you have more control, it is the least expensive option, and it is faster because you determine when the process begins.

There are a few different types of bankruptcy, each of which has positives and negatives. The importance of choosing the right type of bankruptcy is a critical decision, so it would be smart to consult an attorney, to learn about the options available to you. Although it can seem counterproductive to add legal costs to a bad financial situation, getting the decision right, could save you a lot of stress and hassle down the line. Take your time and conduct your due diligence online, to find a good bankruptcy lawyer

Do Not Be Scared Of Bankruptcy - Sometimes It Is The Best Solution For You and Your Family

The word Bankruptcy can sound very scary, and if you are facing the prospect of having to file, then it is only natural that you will be worried and stressed about the prospect. However, it might be better to think of bankruptcy as a solution, rather than a problem; Bankruptcy was designed to help people escape from a potentially hopeless financial situation, and get their lives back on track. The reality is that you are scared because of the situation you find yourself in, you may well have bill collectors trying to contact you on a daily basis. You are probably avoiding your finances because the thought of having to sit down and sort through the bills makes you feel ill. Most people who are about to file for bankruptcy do not even know how much debt they have, because they are scared to write it all down. 

Bankruptcy can help you draw a line under everything and give you a fresh start. Yes, it might affect your credit score, even your future job prospects, but you will be able to start your life again. Don’t be scared of bankruptcy, embrace it as the opportunity it is, and see where life will take you. The team at Fresh Start will be with you every step of the way, and imagine how your life would be if all your debt were gone - many of our clients tell us the feeling of relief is wonderful. In fact,their only regret is not filing for bankruptcy earlier.

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