Bishop Bankruptcy Law specializes in helping people out of financial difficulties and getting them the Fresh Start that they deserve. The right time to file bankruptcy is different for each individual and everyone is urged to seek out a consultation with a Bankruptcy Attorney before making a decision.
Determining the Right Time to File Bankruptcy:
There are two typical sets of circumstance that merit a consultation with a Bankruptcy attorney.
The Ideal Situation:
A Fresh Start –
The best time to file bankruptcy is when any issues leading to your situation are resolved, or being resolved, and you are building toward a stronger future. Look at what you own, or are entitled to, and see if it will protected by the Bankruptcy Exemptions that you can use. Look at the debt you have accumulated and determine whether it is dischargeable (will go away in a bankruptcy). Finally determine if you are at risk of falling back into debt once you file. When you can lose old debt that is dragging you down, while protecting what you own and will own in the future, you are truly able to get a Fresh Start. Unfortunately that is not always the case.
Situations requiring an immediate consultation:
Received a Court Summons –
If you have received a summons to appear in court for failing to pay a debt, contact an attorney and know your rights. Waiting to respond to a summons can make your situation much worse. Even if bankruptcy is not the right choice, it is important that you take some action,
If you are being garnished for an unpaid debt, bankruptcy may be your best chance to end it. Each garnishment becomes more money that you may never get back, so you should act quickly. Even if you are ineligible for a chapter 7 bankruptcy, you may still be able to stop a garnishment by filing a chapter 13 bankruptcy.