Many people assume that bankruptcy is filed because a person is in an extreme amount of debt, with no foreseeable way to pay off said debt, but what exactly does that mean. What amount of debt is too much? At what point is it time to file bankruptcy? Are there other options available? While being in a extreme amount of debt is a completely justifiable reason to file for bankruptcy , there are other factors to consider. In some cases it is advisable to follow through with bankruptcy with the help of a bankruptcy attorney in Port Charlotte, and it’s better to wait before filing. This article discusses when it’s the right time to file for bankruptcy and when it’s not.
It’s common knowledge that bankruptcy hurts your credit and while the “pain” caused by bankruptcy is manageable and overtime can become a non-issue, bankruptcy is still a major financial decision that should not be made lightly. According to Legalzoom.com, one of the immediate benefits that can be gained from filing bankruptcy is what is known as an automatic stay. Once you file for bankruptcy and your creditors have been notified of this status, they are no longer allowed to contact you due to the automatic stay to collect a debt or sue you. The exception to this rule is if you’re facing foreclosure, however this will help to delay the process. Other reasons to consider filing bankruptcy immediately, include but are not limited to the following financial crises:
Filing for bankruptcy, protects you from further wage garnishment by means of the automatic stay. The only exceptions to this are alimony and child support.
While the automatic stay granted with bankruptcy can seem like a good idea for most, there are some additional considerations to take before deciding whether or not filing for bankruptcy is the right decision for you. It’s important to discuss your options with a bankruptcy attorney in Port Charlotte. They can help to provide you with the answers you may be seeking in addition to helping to throughout the process if you do decide to file. The following factors may be indicators that you need to delay bankruptcy or consider other options.
If you’re considering filing bankruptcy, contact your local Port Charlotte bankruptcy attorneys at Miller, Hollander & Jeda. We provide free initial consultations to help you determine whether or not bankruptcy is the best option for you.