When to File for Bankruptcy?
Are there some situations where it’s best to file for bankruptcy? Though bankruptcy does depend a lot on personal finances, there are times when it’s typically best to fast-track filing.
Times You Should Probably Declare Bankruptcy:
- The bank is foreclosing on your home.
Filing for bankruptcy can stop a foreclosure. Once you file for bankruptcy, lenders and creditors cannot continue collection actions – including foreclosure proceedings – against you.
- Your lender is trying to repossess your car.
Again, once you declare bankruptcy, there’s a pause on the collection actions against you.
- You moved states, and the exemptions are less favorable.
Each state has its own bankruptcy exemptions to protect you. If you’ve recently moved states and feel like the bankruptcy exemptions are more favorable, you may want to consider filing for bankruptcy.
- You’re being evicted by your landlord.
Just like your home and car, filing for bankruptcy can temporarily stop you from being evicted. However, if your landlord already has an eviction order from the court, filing for bankruptcy won’t help you.
- You want to stop a lawsuit.
This can include medical debt, credit card debt, car accident damage, or breach of contract. Filing for bankruptcy will stop the lawsuit in its tracks. However, bankruptcy cannot stop ALL lawsuits, so be mindful before filing.
It’s ill-advised to file for bankruptcy without consulting an attorney, even if you’re in some of the situations noted above! Craft Law Offices offers clients a free consultation so you can talk to a professional bankruptcy attorney about your financial future.
Don’t get stuck with debt you can’t get out of, or in a situation that will permanently affect your livelihood. Bankruptcy can offer you a new life and fresh start. To schedule your FREE consultation or learn more about bankruptcy options, call Craft Law Offices at 252-752-0397.