3 Reasons To File For Bankruptcy Immediately
Bankruptcy exists to help people who are in a financial bind and cannot free themselves from debt. There are two types of bankruptcy: Chapter 7 that discharges most or all of your debts, and Chapter 13 that reorganizes your debts to make it possible to pay back some or all of what you owe. Either type of bankruptcy can be advantageous to you. The following are three situations when you should consider filing for bankruptcy immediately.
1. You are in your middle ages and are saddled with debt
If you are in this situation, the chances are you have little savings for your retirement. You need to start saving now, but with a lot of debt hanging over your head, this is not likely to be possible. By declaring bankruptcy, you will get a fresh start, so you can begin planning your retirement. If you go through a Chapter 13 bankruptcy, your debt problems will come to an end after your repayment period is over. In either case, a bankruptcy can be a smart choice to help you prepare for your retirement.
2. You have lost a good paying job
At this point in your personal finances, you may start to eat up your savings while you attempt to find another good paying job. But if the field you worked in does not offer a promising future for employment or your vocation is suffering a big downturn in demand, it may be a situation where you will end up with a job that pays far less. If this is something that may come to pass, it may be best to declare bankruptcy now.
The reason for this is that you need to qualify for a bankruptcy, and it is much easier to do this if you're unemployed. If you find work in the future, but the job pays less, you may no longer qualify for a bankruptcy. You may, however, have a lot of debt that accumulated during your unemployment that is now more difficult to pay back with a lower income.
3. To stop a judgment by creditors
If one or more creditors have won a judgment against you and you now have your wages garnished, you need to consider filing for bankruptcy today. It is one thing to have debts piling up that you cannot afford to pay, but when the money is taken out of your paycheck, you will have less to live on. The same is true when a creditor has filed a lien on your assets. Although this latter situation can be complex, a bankruptcy attorney can often help you out of this situation.
Although there is a stigma associated with bankruptcy, the truth is that it can be a savvy decision for your personal finances. You will need to qualify for bankruptcy, but a bankruptcy attorney can help determine if you do. Contact a company like Charles J Schneider PC for more information and assistance.