Is there an ideal time to file for bankruptcy protection?
Constantly dealing with debt can be emotionally draining. Just when you think there is light at the end of the proverbial tunnel of debt, it is only an oncoming train loaded with more expenses that you are not ready to deal with. The continuous creditor phone calls, the warnings in the mail and the threat of further creditor action may make you wonder if bankruptcy is right for you.
At the same time, you don’t like the idea of being labeled a deadbeat, and you wonder if bankruptcy may ruin your chances of ever having good credit again. Because of these fears, you may also wonder if there is an ideal time to seek bankruptcy protection. This post will give you some insight.
Essentially, bankruptcy may be right for you if:
You are facing foreclosure or repossession – If you have been notified that your home is being foreclosed upon, or the bank is about to take your car away, a bankruptcy will stops all collection efforts.
Creditors are harassing you – If creditors are calling your cell phone or sending text messages and emails, and you have no ability to pay them, a bankruptcy can stop the harassment.
Your budget concessions are not working – If even after cutting expenses your debt problems continue, chances are that a bankruptcy will help.
Of course, every person’s situation is different, so the preceding should not be consider legal advice. Instead, you should speak with an experienced bankruptcy lawyer to learn about your rights and options.