When is the Best Time to File For Bankruptcy?

When is the Best Time to File For Bankruptcy?

Feeling the strain from financial difficulties, especially nowadays, has had a lot of people considering filing for bankruptcy in order to seek some relief...

Feeling the strain from financial difficulties, especially nowadays, has had a lot of people considering filing for bankruptcy in order to seek some relief from these burdens. But, is this the best option to consider immediately? There is no right answer to the question of when to file bankruptcy.  It is different for everyone. A call to a bankruptcy lawyer for a free consultation is always a good idea.  They can help you talk through your financials and decide what is best for you.

Sometimes, waiting too long to file for bankruptcy can mean depleting yourself financially. Too often, people will try every option possible to pay off their debts before filing for bankruptcy.  They will maximize one credit card and then pay it off with another credit card, causing an even bigger burden of debt.  If you wait to file and your home is foreclosed on, you then have nothing. Also, if you liquidate your retirement assets in order to pay off debts, you will be using money that could have otherwise been protected from creditors.

On the other hand, you can file too soon for bankruptcy. If you have already been discharged from another bankruptcy debt and have not waited the proper amount of time between cases, this could mean you won’t be eligible for another debt discharge.