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Why it’s important not to procrastinate filing bankruptcy

On Behalf of | Apr 10, 2019 | Uncategorized

For some of us, procrastination has been a constant throughout school, work, at-home responsibilities — everything. For others, it just happens on occasion — when we’re feeling really overwhelmed.

No matter which category you fall into, you’re probably procrastinating while reading this. If you need an extra push to finally start digging yourself out of financial ruin, here it is. Those who need to file for bankruptcy should do it now for these three reasons.

Facing foreclosure

Filing for Chapter 13 bankruptcy will not only halt the collection efforts of creditors, but it’ll also protect your home from foreclosure. Though bankruptcy will take a hit on your credit score, you’ll still have your home. Foreclosure, on the other hand, will lower your credit score and greatly limit your housing options. In fact, the expense of renting could add to your plummeting finances.

Through Chapter 13 bankruptcy, you’ll follow a strict payment plan that can help establish good habits for managing your bills. After you’re through it you’ll have your house and the tools to rebuild credit — but not if you wait until it’s too late.

Avoiding repossession

The repossession of your sofa wouldn’t be the end of the world—but what about your vehicle? Without an automobile, getting to work won’t be easy and now probably isn’t the best time to risk your employment. Filing for bankruptcy may protect important assets, such as your car so that you have a fighting chance to get back on track.

Stop wage garnishment

Losing your wages to creditors can be scary. Thought your debt is growing, the cost of basic necessities doesn’t go away. Chapter 7 and Chapter 13 bankruptcy are attractive options for those facing wage garnishment because they can bar creditors from collecting the debtor’s paychecks for debt payments.

If your wages are already being garnished, filing for bankruptcy will allow you to get an automatic stay in place that stops this from continuing and allows you access to your income.

Figure out your timeline

In some cases, the timing of your filing may be more important than others. A skilled bankruptcy attorney knows that no single type of bankruptcy is best for everyone.

If you are nervous about the implications of bankruptcy, talk to a lawyer to learn more about whether it’s right for you and what type of bankruptcy might be helpful.