When Should I file for bankruptcy?
When contemplating bankruptcy, many people wonder when the best time is to file. Many people wonder if a certain amount of debt is required to file bankruptcy or if a creditor must take a certain action before beginning the process. Answering these questions is easy; there isn’t a single set of circumstances which dictates when to start the bankruptcy process. The best time to file for bankruptcy is when you are ready to be free of overwhelming debts and regain your life.
Now that you know what bankruptcy looks like in practice, you may wonder how it will affect your life. While everyone who is considering bankruptcy will have a different timeline for filing, certain factors are common that can lead us to decide to move forward. The most common reason is when a creditor tries to repossess a car or foreclose on a house. In both cases, bankruptcy can help you to keep your vehicle or home and catch up on payments.
Similarly, if the creditor has obtained a judgment and is trying to garnish wages or levie a bank account, it could be a sign that you should file for bankruptcy. This is due to two reasons. First, the automatic bankruptcy stay will prevent any ongoing garnishment. It will also prohibit the creditor taking any further action to collect the debt. Second, the bankruptcy discharge will remove the underlying debt that the creditor is pursuing and prevent them from taking further action or pursuing the debt in the future.
Regardless, a collection action or repossession is not necessary for someone to conclude that bankruptcy is needed. Bankruptcy exists to protect people who are struggling with unmanageable amounts of debt from the burdens these debts impose. The best time to declare bankruptcy is when you feel ready to get rid of the burdens of overwhelming debt and regain your life. It can help us with judgments, collections, repossessions and the anxiety that comes along with the specter unamenable credit. Please feel free to contact us if you are ready to experience the relief that bankruptcy can offer. Call us now for a free strategy session with a MN bankruptcy lawyer at LIFEBACK LAW. o, when the time is right, or when you are ready, please don’t hesitate to reach out to Minnesota’s most kind and helpful bankruptcy law firm by going now to
www.lifebacklaw.com
.