Many Americans find themselves in debt and under constant stress. Many debtors agree that filing for bankruptcy is too late. They could have had a better financial future if they filed sooner. As qualified bankruptcy lawyers, we recommend that you seek legal counsel immediately if you are in a difficult financial position. We can help you determine the best course of action, and if bankruptcy is a good option for your financial situation. These are the top four reasons to file bankruptcy immediately and one reason you might want to delay.
Collection Efforts Are Increasing
You may feel stressed and traumatized if you are being constantly contacted by creditors. You can stop creditors from pursuing you by filing bankruptcy. You can stop the phone calls and improve your quality of life by filing as soon as you can.
You Can Continue To Damage Your Finances
Continued payments on difficult debts will damage your credit rating. These debts can be discharged through bankruptcy, which could help improve your financial position. You may find it difficult to pay your child support, home mortgage, or other essential expenses. You can finally get rid of these debts by getting on top of them and releasing them.
Now Could Be The Only Time For You To Qualify For Chapter 7
Chapter 7 bankruptcy is often easier than Chapter 13 bankruptcy. You can discharge all your debts if you pass the means test and your income is less than the median in Florida. If you wait, you could see an increase in your income. You will not be eligible for Chapter 13 bankruptcy. Chapter 13 bankruptcy will allow you to set up a payment plan for paying off some of your debts. You may be able to file Chapter 7 bankruptcy early if you are in a good financial position to discharge most of your debts.
You Could Damage Your Right to Claim by Waiting
It is possible to find yourself in a position where you need to give property or cash to your family members, pay off a smaller amount of debts than all your debts or buy too many luxury items per month. These are the three most damaging items to your bankruptcy claim. You could be denied bankruptcy if you don’t show that you have sufficient income to pay your bills, transfer it to your family members or buy luxurious items. To be eligible for Chapter 13 bankruptcy or Chapter 7, you will need to prove that you are in desperate need of bankruptcy. You can often demonstrate your need for bankruptcy with multiple months of evidence. This is the best way to file and will help you get a favorable settlement from creditors. These actions could cause damage to your bankruptcy claim if they are taken in the month prior to filing.
Contact our team today if you’re considering bankruptcy filings and need expert legal advice. We will help you navigate the bankruptcy process and find the best bankruptcy option for your needs.
This article was written by Alla Tenina. Alla is one of the best Bankruptcy Attorney in Sherman Oaks, and the founder of Tenina law. She has experience in bankruptcies, real estate planning, and complex tax matters. The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.