Is Bankruptcy Right for You?
Many people are hesitant about filing for bankruptcy or believe that bankruptcy is not an option for them. Some people have simply been misinformed about bankruptcy or think that filing for bankruptcy will be detrimental. However, for people with too much debt, bankruptcy is often the best alternative. Before making a decision about filing for bankruptcy, it is imperative that you speak with an experienced bankruptcy attorney.
When to File for Bankruptcy
People considering bankruptcy frequently wait longer than they should. They may be on the eve of a foreclosure sale, had their car repossessed, their wages garnished, and their financial lives ruined. They may have been paying thousands of dollars per year in credit card interest, with little reduction in their outstanding balances. If you are in debt, with no solution in sight, do not put off consulting with a bankruptcy attorney. Filing for bankruptcy can prevent the loss of your home, bank accounts, wages, and other property. And, just as important, filing for bankruptcy at the right time can save you from the stress associated with unbearable debt. If you are in debt and are considering bankruptcy, now is the time to speak to a bankruptcy attorney about your options.
While financial planners advise us to have at least three months of savings in case of financial trouble, loss of a job, or unexpected expenses, the reality is that most people live paycheck to paycheck and are not prepared for any of these situations. When you can barely make ends meet, it can often become impossible to repay your debts. Bankruptcy is available to help people in these situations. If you are having trouble paying your debts, it is important to speak to a knowledgeable bankruptcy attorney to find out if bankruptcy can help you and, if so, what chapter of bankruptcy is right for your situation.
If you are afraid to answer your phone because you believe a creditor may be calling you; you are barely able to make the minimum payments on bills that you owe; or you have been, or are about to be, sued by your creditors, it may be the right time to talk to consider filing for bankruptcy.
Timing of a Bankruptcy Filing is Critical
The timing of a bankruptcy filing is often of critical importance. In some circumstances, a bankruptcy should be filed as soon as possible. For instance, a foreclosure sale or entry of a civil judgment may be imminent. This is why it is important to consult with an experienced bankruptcy attorney before your situation spirals out of control.
At other times, it might make sense to delay a bankruptcy filing. For example, debts for income taxes generally become dischargeablethree years after the taxes were due, as long as the returns were filed on time. Only an experienced bankruptcy attorney can advise you on the proper timing of a bankruptcy filing.
The Most Common Reasons for Filing for Bankruptcy
Credit card debt – Many people who file for bankruptcy have accrued credit card debts that they are unable to repay. Credit card companies often target college students or young people in their early twenties, who need immediate credit, but who do not have the ability to repay their debts in full. Credit card debt can accumulate very quickly, especially with interest rates of more than twenty percent. Often, people simply do not have sufficient income to pay off their credit card balances. No matter the situation, if you find that you have too much credit card debt, or other types of debt that you cannot repay, it is important to consult with an experienced bankruptcy attorney.
Small business losses– Another common reason for filing for bankruptcy is debt accumulated from operating a business. Many small business owners take out personal loans to start up their businesses. If the business does not perform well, these people are often unable to repay the loans. Business owners often use credit cards to pay for ongoing business expenses or to pay for personal expenses because they are not earning sufficient income from the business. Even if the business is incorporated, almost all small business debt is personally guaranteed by the business owner. Consequently, the individual business owner is usually personally liable for the company’s debts.
Loss of income – Many people file for bankruptcy because they have lost their job or they have had their work hours reduced. If you do not have enough income to pay your debts, it may be time to call a bankruptcy attorney who can help you determine if filing for bankruptcy is the right option for you.
Injury or illness – Some people are forced to file for bankruptcy because they have suffered from an injury or illness. Many people are uninsured and have incurred large debts for medical treatment. Even if insured, a person’s insurance might not completely cover all the expenses of treatment. If you are facing debts incurred due to medical bills that you are unable to pay, you should contact an experienced bankruptcy attorney.
Free Consultation to Determine if You Should File for Bankruptcy
Contact the Law Office of Andrew M. Doktofsky today for a free consultation about filing for bankruptcy in Suffolk County, Nassau County, New York City, and surrounding areas. Call (631) 673-9600 or complete the contact form below.
Andrew M. Doktofsky P.C. is a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.