Are you standing neck-deep in medical debt? Do you find your family sinking deeper into credit card quicksand? Should you find yourself a hop, skip, and a jump away from financial ruin, it’s time to act fast. If you’re considering filing for bankruptcy, you should not take the decision to declare bankruptcy lightly. Because bankruptcy can immediately improve your financial life, you shouldn’t wait too long to decide to file.
Reasons to Declare Bankruptcy
Before you decide to declare bankruptcy, contact a bankruptcy lawyer from wh Law. Your bankruptcy lawyer can help you decide what type of bankruptcy is best for your financial situation. They can also help you prepare the legal documents and represent you in court.
If you are uncertain about whether or not to declare bankruptcy, consider these seven reasons that could nudge you closer to a brighter financial future.
You might lose your home
The top reason to declare bankruptcy is to protect your home. As soon as you file the paperwork, lenders and creditors cannot go after your home, even if it has been in foreclosure proceedings.
Your bankruptcy attorney can help you decide if you want to file Chapter 7 or Chapter 13, as Chapter 13 lets you keep your home and make payments. In Chapter 7, you could lose your home, especially if the lender files a motion to lift the bankruptcy stay.
However, you could have your mortgage debt cleared if you file before the foreclosure proceedings end.
Someone is suing you
Another good reason to file bankruptcy is if lawsuits begin to roll in. Suppose you’re experiencing a financial disaster firsthand. In that case, you might be faced with lawsuits from medical offices, credit card lenders, and other organizations as they try to recoup some money you owe.
Filing for bankruptcy will put this rapid-fire of lawsuits to a grinding halt.
Your lender is coming to take back your vehicle
If your lender is trying to repossess your vehicle, filing for bankruptcy immediately stops the lender in their tracks. In a Chapter 13 bankruptcy, you can continue making payments and catch up on late payments.
Your bankruptcy lawyer can also help you get your car back if it was repossessed after you declare bankruptcy.
You’ve won a substantial prize
After filing for bankruptcy, you might not be able to keep all of your prizes, inheritances, and winnings. For example, while you are paying your bankruptcy plan, you must report any income like inheritances, gambling winnings, or property.
Your bankruptcy lawyer can help you file for bankruptcy before you receive your windfall.
You’re starting a new job
One step of filing for bankruptcy is completing a means test, which evaluates your income over the past six months. You must fall below a threshold to qualify for Chapter 7, so your plans to declare bankruptcy could change if you start your new high-paying job.
Before you begin a new job, which could pay better than your old one, you should file with your lower income.
Some states have different bankruptcy laws, especially regarding exemptions. You should file for bankruptcy and declare bankruptcy before you move, especially if your new state has strict regulations. If the exemptions are better in your new home state, relocate and then file.
You can’t pay your bills
Bankruptcy was designed for financially struggling families desperately seeking a fresh start. Although, if you declare bankruptcy, it should be the last resort. Still, if you have no other way to pay your debts and you are floundering, it might be your only option.
Bankruptcy can help you recover financial stability. However, be aware that the road to economic recovery is far from linear. To simplify the process and do everything correctly, a bankruptcy lawyer can help.