When it comes to the motivation behind applying for a Dallas bankruptcy (be it a Chapter 7, 11 or 13 bankruptcy), there are financial dry spells - and then there are financial emergencies. And unless you can tell the difference between the two, then you put yourself - and your finances - at risk for some serious penalties from credit bureaus.
While filing for a bankruptcy can offer you a viable alternative to living off of Ramen noodles for the rest of your life, it's important to discern just what financial situations warrant contacting a Dallas bankruptcy attorney to discuss your options. In some cases, you just might be experiencing a dry spell and need to wait it out, or you only need a debt management plan to pay off your debt in a few years. In other instances, applying for a bankruptcy might be your only option.
If you're not sure how to tell the difference between the two, then here's a quick cheat-sheet guide to the pivotal moment to apply for a bankruptcy:
- If you've suddenly lost your job and have bills coming up, don't contact your Dallas bankruptcy attorney just yet. Instead, call up your bill holders and explain your situation. You'll be surprised at how many vendors are willing to offer you a grace period to get your unemployment in line before demanding payment. If a vendor isn't so receptive to your financial hardship and demands immediate payment, then it's time to consider applying for bankruptcy before the collection notices start pouring in.
- If you've fallen behind on a bill payment, it's time to pick up that phone again and give your vendor a call. Let them know that you've suddenly hit a financial hardship and will need extra time or a new payment plan to give them their money. Vendors are far more willing to work with you if they think they might lose out on their money, so use this as a first resort. If they're still being unreceptive to your efforts to negotiate a better deal, don't be afraid to use the "bankruptcy" word. You'll be amazed at how quickly your lenders will want to work with you once you start wielding that magic word!
Try to work out alternative solutions to your financial hardships before applying for a bankruptcy, as sometimes you can find alternative options that better suit your financial situation.