When is the Right Time to File Bankruptcy

Finding yourself in excessive amounts of debt can be one of the most stressful situations an individual has to face. Being in a bad place financially may leave you with questions such as, "What type of debt relief is the best for my situation?"  There are several forms of debt relief available, contacting an experienced bankruptcy or debt relief attorney will give you a better idea of what debt relief solution may be the right answer for you and your family.  You may also wonder how bad your situation has to get before you file for bankruptcy protection.  When to file bankruptcy is something you need to consider.  At what point have your debts caught up with you and overwhelmed you.

Filing for Chapter 7 Bankruptcy protection is an easy and intelligent way to get a “Fresh Start” during the current woeful financial situation of the economy. Who qualifies for Chapter 7 bankruptcy protection?  Individuals who reside, have a place of business, or own property in the United States may file for bankruptcy in a federal court under Chapter 7 (“straight bankruptcy”, or liquidation).  Just because you are eligible to file chapter 7 bankruptcy, doesn't necessarily mean that you "qualify" for chapter 7 bankruptcy.

Chapter 7 bankruptcy, also known as “fresh start bankruptcy” or “straight bankruptcy”. Chapter 7 bankruptcy offers an opportunity for an individual to wipe away most or all of their unsecured debt. According to the Arizona bankruptcy filing numbers, Chapter 7 bankruptcy is the most common type of bankruptcy.  Filing for Chapter 7 Bankruptcy in Arizona provides debt relief for hard-working people whose lives are being consumed by overwhelming debt. 

There are circumstances when filing for bankruptcy can be beneficial:
  • When your wages have been garnished or your bank account has been attached to a Writ of Garnishment.
  • When Creditors are harassing you at home and/or at work.
  • If you have had a vehicle or other item(s) recently repossessed.
  • When you have excessive medical bills that you will never be able to pay.
  • If you owe State or Federal Taxes that you are unable to pay.
  • If you are more than 30 days behind on one or more of your bills.
  • When most of your current debts are ‘unsecured debts’ like medical bills or credit card bills, etc…
  • When your Liabilities exceed your Assets
  • If your electricity or other utilities are shut off or about to be disconnected.
  • When you have already tried to negotiate you debt down.
  • If you want to keep your IRA.
  • If there are pending law suits or garnishments against you.
  • If you have little or no savings or money saved. You have few assets.

Take a look at the list above, if you are currently in any of the situations or if you are soon going to find yourself in any of the situations, you should maybe consider filing for chapter 7 or chapter 13 bankruptcy.  An experienced debt relief attorney can help assist you with your current financial situation.  Seek help today and put the worries behind you.