If you ever find yourself in a situation where you’re not able to repay your debts, bankruptcy might be the best way out. Walter Benenati, an experienced bankruptcy attorney, asserts that bankruptcy is unfavorable and has long-term consequences. However, if you have exhausted all other debt repayment options, it could be the only to get a larger of your debts discharged and can be the best thing for your finances.
Debt discharge is a permanent order issued by the bankruptcy court, and its main purpose is to relieve your debts. It can also prevent your creditors from attempting to collect your debt. But filing for bankruptcy has negative consequences too. These include a negative impact on your overall credit score and possible loss of your property.
Well, the idea of going bankrupt can be troubling, but it might make sense to be certain that there is no better option. Also, remember that, in some cases, delaying your bankruptcy case could cost you more than you think. Here is what normally happens when you are attempting to avoid filing for bankruptcy.
- You are cashing in or selling your assets to keep up with your credit card payments. In a bankruptcy case, these assets could be exempted.
- You might consider consolidating your credit cards to one loan. This often results in an unimaginable interest rate, and that means you end up delaying bankruptcy while paying more and more interest.
- You are more likely to experience unpleasant conversations with your creditors as you try to explain the delay in payments and when you will make the next payment. Sometimes, you might face lawsuit threats.
- You are just wasting your time trying to figure a way out of your financial crisis. Instead, it’s better to file for bankruptcy then work on rebuilding your finances and credit score.
According to financial experts, it doesn’t make sense to wait until your financial situation somewhat improves because failure to file for bankruptcy in time will end up costing you more. If your financial issues are preventing you from filing for Chapter 7 bankruptcy, you can opt for Chapter 13 bankruptcy.
Under Chapter 13 bankruptcy, you cannot write off most of or all your debts. Instead, you will pay the amount of debt you can afford to pay your creditors within a period of three to five years. The chances are that you will pay more money just because you didn’t get in touch with a bankruptcy lawyer in time. Generally, these professionals understand bankruptcy law perfectly and can offer great insights.
Time is another cost associated with delay to file for bankruptcy. The longer you wait, you are still delaying your debt discharge – your fresh start. Remember, time is valuable, and if bankruptcy is the only solution to your financial challenges, it’s recommended to act as soon as possible. Consider consulting with a trained, experienced, and reliable bankruptcy attorney. The lawyer can help you figure out the right bankruptcy option and also help you navigate the complicated procedure of filing for bankruptcy.