When you file bankruptcy it can help you obtain a fresh financial start. However, it can be difficult to know when the best time to file your case is. There is no magic formula for pin-pointing the best time to file a Chapter 7 or Chapter 13, but there are many warning signs that a bankruptcy filing should be considered.
A few examples of warning signs that a bankruptcy filing should be considered include:
- Your mortgage lender is threatening foreclosure of your home
- Your car, boat, ATV or other assets are being repossessed by creditors
- Collection lawsuits are pending against you
- You do not have insurance and your medical bills are overwhelming you
- Your wages and/or your bank account is being garnished
- You are being harassed by debt collectors
- You are delinquent on your taxes
- Most of your debt is unsecured (such as credit cards)
- You do not have an emergency fund or any savings
- Excluding your secured loans (mortgage, vehicle loan, etc), you cannot pay your total debt in full within five years
It May Be Difficult to Figure out the Best Timing to File Bankruptcy
Deciding whether to file a personal bankruptcy case is difficult, but figuring out the best timing can be even harder. The above list is just a few examples of the situations that may warrant filing for bankruptcy.
Collection Efforts Will Stop When You File a Bankruptcy Case
The good news is that whatever your circumstances, if you decide to file a bankruptcy case, the collection efforts against you will stop. The automatic stay is immediately effective when you file your petition, which prohibits any further collection activity against you. We can review your finances and decide if bankruptcy can provide you the debt relief you need.
Contact a Brevard County Bankruptcy Attorney at Faro & Crowder, PA
If you are interested in learning more about how a bankruptcy filing will impact your debt, contact Faro Crowder, PA to schedule an appointment. We are located in Melbourne, Florida on Sarno Road and serve residents and businesses of Brevard County and the Space Coast.
Get In Touch with Faro & Crowder, PA
Faro & Crowder, PA
1801 N. Sarno Road, Suite 01
Melbourne, FL 32935
The information on this blog or any blog is not intended as, and should not be taken as, legal advice.