Filing for bankruptcy may allow you to receive the debt relief you need to get a fresh start financially, all while protecting you from the collection activities and overall pressure of your outstanding creditors. While this may seem like a great opportunity given your current financial strife, there may be certain circumstances in which one of our lawyers would sooner advise you against it. Putting that into consideration, please read on to discover when filing for bankruptcy is a good or bad idea and how a seasoned Louisville, Kentucky consumer bankruptcy lawyer at Schwartz Bankruptcy Law Center can help you understand the best move for you to make.

Under what circumstances is filing for bankruptcy a good idea?

To reiterate, bankruptcy comes with the ultimate pro of leading you out of financial ruin. But filing for bankruptcy may be an exceptionally good idea if you wish to reap all its other added benefits. More specific examples are as follows:

  • You may want to place an automatic stay that temporarily halts your creditors from trying to seize your property.
  • You may want your assets to be exempt from your creditors selling them to satisfy your debts (i.e., inexpensive cars, professional tools, retirement accounts, etc).
  • You may want to wipe out your unsecured debts (i.e., credit card debts, medical bills, student loans, etc.) and ultimately pay less than you owe.
  • You may want a trustee and lawyer to work on your behalf in contacting and dealing with your creditors.

When is filing for bankruptcy not in my best interest?

Based on what you have read thus far, you may be under the belief that a bankruptcy filing is too good to be true. Well, you must understand that there are potentially major cons to this, all of which must be carefully considered before making your declaration. Without further ado, this may not be in your best interest in the following circumstances:

  • You may not want to incur the hefty filing fee for your case (i.e., approximately $338 for Chapter 7 and $313 for Chapter 13 in Kentucky).
  • You may not want to undergo the lengthy process that is your case (i.e., approximately four to six months for Chapter 7 and three to five years for Chapter 13).
  • You may have debts that, in the majority, do not qualify for discharges in your case (i.e., certain taxes, federal student loans, domestic support debts, etc).
  • You may not want your case to appear on your credit report and subsequently hinder your ability to rent property, take out loans, work in certain fields, etc.

We understand just how delicate this situation may be for you. If you need an emotional support system that doubles as a legal support system, look no further than Schwartz Bankruptcy Law Center. Retain the services of a competent Louisville, Kentucky consumer bankruptcy lawyer today.