When Should You File for Bankruptcy?

Deciding when to file for bankruptcy involves many different factors. Many people explore non-bankruptcy options before they decide bankruptcy is right for them. Other individuals know immediately after meeting with a Georgia bankruptcy lawyer that filing for bankruptcy is the best way for them to resolve their debt problem.

Below are several situations in which filing for bankruptcy may be the best option for dealing with a debt problem. Because each situation is different, it is usually best to discuss your financial position with a Georgia bankruptcy attorney to ensure that you are choosing the best option for you.

Five Reasons to File for Bankruptcy Relief

  1.  You have become disabled and cannot return to work
    For many people, a debilitating condition or disease can cause financial hardship. Struggling to pay living expenses and bills without a steady income can be difficult. In most cases, disability benefits are protected in a bankruptcy filing. Therefore, a person could get rid of debts they cannot afford to pay now that they are disabled by filing for bankruptcy relief.
  2. Your business has ended
    When a business ends, there could be thousands of dollars in bills remaining that are unpaid. If the business was a sole proprietorship, the owner could be personally responsible for the bills. Filing a bankruptcy case may be the best way to resolve the business debts while protecting personal assets.
  3.  You are using your retirement savings to pay unsecured debts
    Unsecured debts include credit cards, medical bills, personal loans, and other debts for which the creditor does not have collateral. If you are using your retirement savings to pay these bills because you do not have sufficient monthly income to pay everything, you may want to consider filing for bankruptcy. Most retirement accounts are protected in bankruptcy, so you can get rid of debts you cannot afford to pay while keeping your retirement savings to pay living expenses.
  4.  You are about to lose your home
    If you are facing a foreclosure, filing a bankruptcy case may help you keep your home. A bankruptcy filing stops foreclosure proceedings. Through a Chapter 13 bankruptcy plan, you can catch up your past due mortgage payments over time to allow you to keep your home.
  5.  You cannot afford to pay your bills
    There are many reasons why someone experiences financial hardship. Some of the common reasons include divorce, sickness, the death of a spouse, business failure, accidents, and mismanagement of finances. Whatever the reason may be, if you cannot afford to pay your bills each month, you may want to explore your bankruptcy options.
    In many cases, individuals can get rid of debts they cannot pay while keeping all their belongings and property. Bankruptcy is intended to give someone a fresh start after they experience financial hardship, regardless of the reason.

Consult a Georgia Bankruptcy Attorney for More Information

If you think you might need to file for bankruptcy, schedule a consult with a skilled South Atlanta bankruptcy attorney today for a free consultation to learn more about the benefits of filing bankruptcy.

Posted in: Bankruptcy