Deciding to declare bankruptcy is something that must be thoroughly thought out. This is because, while this decision may offer you great financial relief, it may come with some serious implications. Namely, it may damage your credit, hurt your opportunities to obtain personal loans, liquidate some of your valued assets, etc. This is not to mention the invasion of privacy that you may feel during this time. Continue reading to learn what considerations you should make before declaring bankruptcy. An experienced Louisville, Kentucky consumer bankruptcy lawyer at Schwartz Bankruptcy Law Center may just help you make this critical decision.
What considerations should I make before declaring Chapter 7 or Chapter 13 bankruptcy?
Bankruptcy court proceedings can grow extensive, therefore requiring a great time commitment from you. What’s more, it may require a great deal of effort between producing certain documents and personally working with a bankruptcy trustee, among other things. So before taking the plunge and declaring Chapter 7 or Chapter 13 bankruptcy, you may want to ask yourself the following questions:
- Have I recently experienced a significant life event that has made paying off my debts difficult (i.e., job loss, divorce, a serious medical diagnosis, etc.)?
- Have I been made the victim of harassing collection activities by my creditors (i.e., threatening phone calls, incessant mail, etc.)?
- Have I been served with a lawsuit(s) from my creditors regarding my inability to make debt payments?
- Have I been notified by the bank that my property is subject to a foreclosure action?
- Have I been repeatedly borrowing money from my family members, friends, or business partners to help pay off my monthly bills?
Well, if the answers to the aforementioned questions are a resounding “yes,” then it may be wise to proceed forward with filling out a bankruptcy petition.
What alternatives to bankruptcy should I consider first?
Of note, you may find yourself in a financial situation that is not great but also not dire enough to constitute a bankruptcy declaration. In other words, you may want to consider less drastic, alternative solutions to bankruptcy. More specific examples are as follows:
- Apply for a deferment of your outstanding debts.
- Negotiate debt settlement agreements with your creditors.
- Attend debt counseling to develop a debt management plan.
- Sell your significant property and assets through a private sale.
At the end of the day, you must choose the path that will provide you with the opportunity for a fresh financial start. And, perhaps lucky for you, this path may not necessarily require bankruptcy. So when it comes to your bankruptcy declaration, there is no question that a skilled Louisville, Kentucky consumer bankruptcy lawyer is the best fit for you. Please contact Schwartz Bankruptcy Law Center at your earliest possible convenience.