Not a lot of people want to make the decision to file bankruptcy, but ultimately they discover that there is some point where it simply must be done. Although for many people it may seem that bankruptcy absolves you of all financial hardship, it is important to keep in mind that bankruptcy will affect your credit rating and you may suffer other ramifications. The following circumstances demonstrate situations in which you should likely file for bankruptcy.
- If you are constantly borrowing money from one credit source to pay another credit source, or if you take cash advances of more than $500 just to pay for living expenses.
- You borrow to meet regular expenses like food and utility bills.
- You have stopped answering your phone because the only calls you receive now are from creditors.
- There are creditors that are threatening to sue you, or they have even already taken some legal action against you and you ultimately face garnishment?
Deciding Which Bankruptcy is Best for You?
Then it comes to making the decision of what bankruptcy you need to file, it is best to consult a bankruptcy attorney to review all of your options. The two most common bankruptcy options are chapter 7 and chapter 13. With a chapter 7 bankruptcy you are able to wipe all your debt clean and it will also give you that immediate fresh start. On the other hand, a Chapter 13 bankruptcy offers an opportunity to consolidate all you debts and make payments for three to five years.
However, you need to make sure that you consider filing for bankruptcy when you have gone through all of your other options. You’ll need to make sure that you think about your financials as practical situations. You will also find that if you get some professional advice from a bankruptcy lawyer they will tell you what your options are and also get the bankruptcy filing going if that is your last option.
