Filing for bankruptcy is a tough decision to make. For a reason. After all, we all have heard that there is no going back after you file for bankruptcy under a Chapter 7 plan (or any other bankruptcy plan, for that matter).
Not to mention that filing for bankruptcy can have a devastating effect on your credit for years and decades to come. These are the things we have been hearing about bankruptcy, but are all of them correct?
This is the question we asked our Salt Lake City Chapter 7 bankruptcy attorney Justin M. Myers. And today, you are going to find out when it is time to file for bankruptcy. Before you make the decision, consider the following…
Negotiate with your creditors
Since you can have your debts discharged under a Chapter 7 bankruptcy plan, your creditors are definitely not interested in your bankruptcy. If you are behind on your payments, negotiating with your creditors may be the best way to avoid bankruptcy. However, you may need a Chapter 7 bankruptcy attorney in order to negotiate a fair settlement.
Try credit counseling
“Why would I even bother?” you may think. But in reality, getting credit counseling can make a huge difference when it comes to avoiding bankruptcy and finding a viable alternative to filing for bankruptcy. In fact, you will be required to get credit counseling for six months before filing for Chapter 7 bankruptcy anyway. So it is a win-win situation.
Stop wage garnishment
If your creditors have already begun to garnish your wages, there is nothing much you can do at this point but to file for bankruptcy in order to stop wage garnishment. However, other options may be available in your particular case, which is why it’s highly advised to speak to a bankruptcy attorney before making a final decision.
Unaffordable medical bills
If you have medical bills which you cannot afford and which take you deeper into poverty and shortage of money, filing for bankruptcy may be the only option to discharge some or all medical bills, or at least get a 3- or 5-year repayment plan under Chapter 7 bankruptcy.
Fact: unaffordable medical bills are the most common reason why people in Salt Lake City and all across Utah file for bankruptcy. Do the math.
Your assets and savings
A rule of thumb is that if the assets that you own are worth less than the debt you owe, filing for bankruptcy under a Chapter 7 plan is probably the best decision. Similarly, having no assets whatsoever when you are falling behind on payments will most likely lead to bankruptcy.
Hire a bankruptcy attorney
You are cornered and have no choice but to hire a Salt Lake City Chapter 7 bankruptcy attorney when you have been sued and got a lawsuit summons in your mail. Losing the lawsuits or ignoring the summons altogether might have devastating and irreparable consequences such as wages garnishment or seizure of your assets, both of which can be prevented if you file for bankruptcy.
Contact the Salt Lake City offices of JMM Legal today to discuss your bankruptcy options in your particular circumstances. And remember: bankruptcy is not the end of the world. Call our attorneys at 1-801-505-9679 or complete this contact form for a free case evaluation.
