You might wondering when a good time to declare bankruptcy would be and if you have not talked to any one about it, it might be a confusing time for you. Little do you know that you can file for bankruptcy easier than you can go through credit counseling services or a credit management services company. Bankruptcy is filed when the court date is set. Sometimes it can take up to four weeks to get paper work together and to get all the information together that you need. Some times you may not even realize how many bills you have until you find out from the credit check they do.
The first thing you might want to discuss is if filing would be the right thing is if you want to lose assets you have acquired or if you want to keep certain aspects you have acquired like a house or cars or other possessions. If you think about whether or not you want to get out of debt and be completely rid of it quickly then you’ll want to file a chapter 13. This is where they will sell what ever assets you have and then pay off your debtors. This includes boats, motorcycles, houses, land and any thing else they seem necessary to take to sell to help you with you to pay off your debt.
If you decide that you just need help to make sure that the people who need to be paid get paid then you want to file a chapter 7. A chapter 7 lets you re-organize your personal finances in order to keep things like your cable, satelite, internet, phone, or electric bill from getting cut off. This allows you to keep your assets with just paying payments to the bankruptcy place then paying the debtors what ever is left. When you feel like you have gotten to the point where you keep over spending each month and the over spending is just to pay bills to stay above water then you need to file bankruptcy.
Bankruptcy is different in that you do not go and borrow money while you are in bankruptcy and you can have the option of taking the money directly out of your checks or directly out of your bank account every time you get paid. The bankruptcy can be for as long as it needs to be in order to pay off the debt. The thing that makes this different is that bankruptcy starts paying your bills right away and with the credit counseling services it could take up to 2 years before you pay in enough to get the fees paid for them to start working for you. With the credit card counseling services your bills don’t get paid for that time period and it goes on your credit score and your credit can be ruined depending on how much debt you have to be paid back. It’s easy to file and if you have the right lawyer you can find that the lawyer does all the paperwork for you and even helps you to check to see what other bills you have that you may not be aware you that you have.
So is filing bankruptcy a good time for you? Well, it’s obvious if you look at your income and look at the amount you are supposed to pay out then determine from that if you should file bankruptcy. If you are in the red just about every month then you should think about filing bankruptcy. Filing bankruptcy is easier than standing there wondering how you are going to make for next month. Your essentials are needed to be taken care of and you do not need to keep your self from having a home and a vehicle which are two things you need to make work happen and to pay your bills. When you get to the point where you may have been divorced or you went through a bad break up or you trusted the wrong person and your bills keep piling up then that is the time to file for bankruptcy.