You may wonder if it is time to file bankruptcy when you're struggling to make good on financial obligations. Individuals looking to improve their financial situation become overwhelmed. Creditors tend to make things worse when they become aggressive with their collection tactics and lead to debtor harassment . This is often the case for outstanding debt that is several years old. Many debtors feel bankruptcy is their last option after struggling to make minimum payments and dried up retirement accounts. Emotional stress also takes its toll, but the question still remains: should you file bankruptcy?
In the past, many consumers tried to put off filing or felt the concept was unacceptable. Too many were concerned about hurting their chances of obtaining credit in the future. The current economy, however, views bankruptcy as a viable option for improving finances and even creditworthiness since a wide variety of creditors are helping people gain and rebuild credit sooner than most realize. Creditors are making necessary adjustments so more people qualify for credit; including mortgage lenders.
But filing bankruptcy begins with working with a reputable attorney to ensure your situation is handled in the best way possible. Filing requirements may vary from one state to the next, but you should become aware of what is needed when you start the filing process. For instance, if you are seeking to file Chapter 7 bankruptcy , there is a means test that reviews your income and debt situation.
Filing for bankruptcy shows you are not a shamed to take control of your finances. If you feel enough is enough and ready to secure a better financial future, then bankruptcy may give you the fresh start you need.