Even when you are trying your best to overcome debt and dig yourself out of the hole, new bills can continue to pile up and your creditors must be paid. If this sounds like your experience, it may be time to consider filing for bankruptcy. The most important thing you can do is ask for help, understand what the pros and cons of filing are, and know what the process is going to be like.
Signs It’s Time to File
Living paycheck to paycheck may not be the reason you are considering filing for bankruptcy. Maybe it’s the unexpected medical bill, or having to get your car serviced so you can get to work. Everyone’s situation is different, and everyone files for different reasons. However, filing for bankruptcy may be your best option to start over with a clean slate if any of these are true for you:
- If you are several months behind on your mortgage payment.
- If you are unable to purchase necessities, such as food, without using a credit card.
- If you have lost a job.
- If your home is going to be foreclosed, or your car is being repossessed.
Pros to Filing for Bankruptcy
There are many pros to filing for bankruptcy. Though it can seem like a “last resort,” filing for bankruptcy is a chance to start over. It is a lengthy process that can be full of unknowns, but Leslie Craft with Craft Law Office by your side, the procedure can be simpler and more straightforward.
- Harassment from creditors, including letters and phone calls, will stop.
- You could have the ability to restructure or rid yourself of debts.
- You could avoid repossession or foreclosure and keep assets, including your home and car.
- You could start over financially and improve your situation.
Cons of Filing for Bankruptcy
Filing for bankruptcy can improve your life and help you get back on track to financial freedom. However, there are certainly some things to consider before you decide to file. Your bankruptcy attorney will review all the effects of filing, so you know exactly what to expect.
- Your credit score will be affected by filing for bankruptcy and will stay on your credit report for up to 7 to 10 years.
- The requirements and guidelines you need to follow in order to file are strict and rigorous.
- Depending on which chapter of bankruptcy you choose to file, you could potentially lose certain assets.
- After filing, you may face certain financial restrictions including the ability to get a credit card or a personal loan.
What You Need to Know About Bankruptcy
Before you file for bankruptcy, it is crucial to hire a bankruptcy attorney to help you along the way. The paperwork is complex, and it can be stressful trying to navigate the complicated and difficult journey of filing. A licensed, experienced attorney can help relieve the pressure and prepare you for the next steps of living a debt-free life.
It is crucial to contact an attorney as soon as possible. Leslie Craft at Craft Law Offices can answer any questions you may have and help you decide if filing for bankruptcy is the right decision. She can also help you decide which type of bankruptcy is best for your situation. Don’t go it alone, schedule your free consultation with Craft Law Office at https://craftlawoffice.com/schedule-appt/.