Can You Wait Too Long to File for Bankruptcy?

Filing for bankruptcy should not be seen as surrendering to one’s financial situation and waiting to get expert advice can only prolong financial struggles. A report published by the Consumer Bankruptcy Project states that those who delay a bankruptcy filing for two years or more possess half the median assets of those who took action sooner. Hiring a bankruptcy attorney in the early stages of their financial struggles provides debtors with options and opportunities to avoid unnecessary difficulties.

Advantages of Filing for Bankruptcy

Upon filing for bankruptcy an automatic stay is put into effect, notifying collection agencies that they are prohibited from future contact with the debtor. All communication must be directed to the hired attorney, putting an end to harassing phone calls and letters. Additionally, the stay ceases the ability for creditors to file a lawsuit, garnish wages, or seize assets.

Debtors facing the possibility of foreclosure may be afforded additional options by filing for bankruptcy, which can create delays in the process and provide the ability to remain in the home for a longer period of time.

Indicators of When to File for Bankruptcy

Identifying the opportune time to declare bankruptcy can be challenging for those facing significant debt. Consideration for filing should be given if the following factors apply to an individual’s current situation.

• The deficit acquired surpasses 40% of one’s income.

• Additional arrears are accumulated to pay existing debts.

• One is unable to afford basic necessities due to the critical financial situation.

• The unpaid bills consist of credit cards, loans, and medical expenses that can be discharged in bankruptcy.

• Harassing phone calls or letters are received from debt collection agencies.

• Reserved assets are being depleted in an effort to keep up with payments.

Individuals who are unsure of whether or not they should pursue a declaration of bankruptcy should seek the counsel of an experienced attorney. It is not in the best interest of every individual to file for bankruptcy immediately. However, for some taking swift action could result in the chance to improve credit rating and achieve financial stability. A reputable lawyer will present alternatives and advise on options suitable for one’s unique financial situation.

The experienced bankruptcy attorneys at Kelley Kaplan & Eller explore all available options and remedies to correct the financial problems of clients before jumping into bankruptcy. If you have questions about whether or not filing is the right solution for you, contact us today for a consultation.