January 19, 2022

When Should You File for Bankruptcy?

When a major debt or financial burden drives you to a dead-end, you might consider bankruptcy as a way to regain control of your life. But before you take this major step, it is important to understand exactly when you should file for bankruptcy

The right bankruptcy attorneys can help you with everything from unsecured debt like credit card debt to medical bills and more. These details help you decide and learn what to expect from the process. It would also be greatly beneficial to have PA Bankruptcy lawyers at your side. As a result, you can go through this otherwise daunting experience with ease. 

If you need help with filing bankruptcy or need bankruptcy attorneys who understand bankruptcy law, reach out to our bankruptcy attorney at Siddons Law today. To help you with this journey, here is a lowdown on when to file for bankruptcy.

When is Bankruptcy Right For You?

Due to the stringent processes associated with filing for bankruptcy, the measure can cause some hesitancy in many people. Individuals may be dealing with a large amount of unsecured debt, medical bills, and more. They may not want to go through credit counseling or bankruptcy because of its impact on their credit report.

The idea of financial ruin and interacting with the bankruptcy code due to credit card debt or secured debt can create quite a bit of tension for many people. But declaring bankruptcy is not a negative decision. It can act as a second chance for you to put your life back together. But to get the most benefit out of bankruptcy, you need to declare it at the right time. For instance, if you have any options available for debt relief, such as joining a debt management plan that consolidates your debt and reduces its interest, you should look into them before filing for bankruptcy.

However, if finding these debt relief options is not possible, filing for bankruptcy may be a more suitable route for you. Even then, you need to consider if you meet a few factors first. This ensures that you make a logical decision that does not stem from financial desperation. 

These indicators include but are not limited to the following. 

  • Your debt negotiation efforts with your lenders have failed. 
  • Your income is not enough to make monthly repayments for your debt.
  • Your available asset value is not enough to repay your debt. 
  • You cannot repay your debt with regular monthly payments within a five-year timeframe.

If these factors hold true in your case, it would be better for you to file for bankruptcy and find another chance to put your life together again. Depending upon your situation, you may choose between a Chapter 13 or Chapter 7 bankruptcy. You can learn more about the differences between them through the help of a financial expert/bankruptcy attorney.

Our bankruptcy lawyer professional, Michael Alan Siddons, is here to help you with everything from court filing fees to navigating through bankruptcy court in Media, PA. If you require a free initial consultation at our law office, reach out to our bankruptcy lawyer today.

Our bankruptcy lawyers understand the gravity of bankruptcy court and how stressful it can be dealing with bankruptcy laws in Delaware county and other areas. We know that bankruptcy matters and can have an impact on your life. That is why our law firm is there to walk you through the legal process, speak with you about bankruptcy laws, and move through the bankruptcy filing as necessary.

Why Should You File For Bankruptcy?

Once you have determined that you may be a good candidate for bankruptcy, you may want to look into the benefits of the process. This allows you to consider the measure as a helpful approach instead of something to hide from at all times. By filing for bankruptcy, you can find relief through the following benefits. 

Discharge of Certain Debts

If you are eligible to file for Chapter 7 bankruptcy, you can find permanent relief from several types of debts. On the other hand, even a Chapter 13 bankruptcy can help you get rid of various immediate debt obligations through a repayment plan. This ensures that you don’t have to worry about meeting urgent debt requirements. 

Depending on the type of bankruptcy you qualify for and your assets in place, this debt discharge can be quite significant. By speaking to a bankruptcy lawyer, you can check how this benefit works in your situation. 

No Collection Calls

When you cannot fulfill your debts, you must face the excruciating aftermath of repeated collection calls. The frequency of these collection reminders can grow to the point of harassment, disrupt your peace of mind, and add an insurmountable amount of stress to your life. 

You can put these collection calls and contact attempts behind you by filing for bankruptcy. The peace you experience afterward can be a relieving experience and allow you to get back to your life without unnecessary pressure weighing you down every day.

No Debt Lawsuits

When you are unable to repay your debt, collection calls are not the only factor that can make your life full of stress. In fact, when debt lawsuits come into the picture, they can make collection calls look like child’s play. With these lawsuits, you have to face the burden of legal proceedings and have to brace yourself for court-ordered compensation.  

By filing for bankruptcy, you can bid farewell to these lawsuits. This ensures that you can continue living your life without continuously having to look over your shoulder for unwanted legal challenges.

No Foreclosure

If you have missed a few payments on your mortgage, you may be on the brink of losing your home. This process takes place through foreclosure, where your lender exercises their right to seize and sell your house to recover the funds they lent to you for your home. 

You can avoid the foreclosure process and keep your home by turning to bankruptcy. But to achieve this goal, you need to make sure that you are moving fast and filing for bankruptcy before your bank puts the foreclosure process in motion. 

Whether you need assistance with the bankruptcy estate, a bankruptcy petition, a bankruptcy filing, or other elements related to the bankruptcy case, our bankruptcy lawyers at Siddons Law are here to help.

Filing for Bankruptcy Can Be Beneficial In Some Cases

If your finances outline a bleak debt repayment or debt negotiation situation, you mustn’t delay filing for bankruptcy. The longer you take to execute this step, the more you may lose any savings that you may have in place that could help you get out of this financial rut. 

See how our bankruptcy attorney in Media, PA at Siddons Law Firm can help. Don’t hesitate to contact us at 610-255-7500 for a consultation today. We will be here to understand your concerns and guide you through this complex process with the comfort and peace of mind that you need.