Filing for bankruptcy is an important decision in one’s life. When people find themselves unable to repay their debts, bankruptcy seems like a viable option to de-escalate the situation. The ultimate objective of filing a bankruptcy is personal discharge from financial obligations. Discharge refers to a permanent order issued by the bankruptcy court which relieves an individual from their accrued liabilities. It prevents creditors from pursuing their outstanding debt effective immediately. However, it also has some negative consequences such as possible loss of property and adverse impact on credit ratings of an individual.
Why Should You Not Delay Your Bankruptcy?
While the notion of filing bankruptcy may sound upsetting and difficult to many, and these feelings are valid, however, if there is no other alternative available at one’s disposal, then they should not delay filing for bankruptcy as it can prove costly. Here are some reasons why you should not prevent delaying your filing:
- You may dispose and sell your valuable assets or generate cash to pay your credit card payments. However, these assets may get an exemption in a bankruptcy case.
- You will keep wasting your assets by paying interest on your debt by making minimum payments. However, it will not reduce your principal amount hence you will remain stuck in debt.
- You may be able to consolidate credit card loans to a single debt; however, it will only result in an insignificant reduction in interest rate. This might delay your inevitable financial devastation, but will certainly not solve the problem.
- You will constantly be dealing with creditors trying to negotiate payment arrangements, however, if you continue skipping payment then you may be open to lawsuits.
- You will waste your valuable time in managing your debts which may be utilized otherwise in a constructive and productive way such as generating a new source of income and rebuilding your finances.
In addition to that, delaying may not be a wise choice because it may potentially make you ineligible for filing a Chapter 7 Case, thus you may end up filing a Chapter 13 case. The former allows writing off a large portion or perhaps your entire amount of accrued debt, while the latter will force you to pay as much as you can afford to your creditors for a time period ranging from 3 to 5 years. There are some cases where filing a Chapter 13 case may be favorable.
It can be highly advantageous for you to acquire services of an experienced bankruptcy lawyer when filing for bankruptcy. Your attorney will assess your case and provide you with the best possible solution based on circumstances pertaining to your case. Using their vast knowledge and understanding of law, a seasoned bankruptcy lawyer can devise a strong case in your favor. Furthermore, your bankruptcy lawyer will handle all the paperwork related to your case, prepare and guide you through the case, and handle creditors on your behalf, which may help you deal with your bankruptcy process.
If you wish to get more information about this subject or schedule a free consultation, contact Jackson Abdalla Law Group at (773) 550-3853 to speak with an experienced bankruptcy lawyer.