Connect with us

General

When Is It Time For You to Declare Bankruptcy?

When Is It Time For You to Declare Bankruptcy?

If you’ve reached a point where you can no longer pay your debts, you need to file for bankruptcy protection. Postponing the process will only put you deeper in debt and extend your wait to be debt-free. Once you file for bankruptcy, collections attempts will cease and your creditors will stop contacting you. Here are some steps that will help you avoid mistakes once you file for bankruptcy protection.

File Your Taxes

If you think you’ll be filing for bankruptcy protection, it’s crucial that you file your taxes first. Your taxes are part of the way that the court will determine your ability to repay your debt. If you haven’t filed your taxes, you may end up being ordered to repay at least a portion of your debt. However, if you’ve filed your taxes every year, the court will have a clear picture of your finances, which will help the courts reach a fair and amicable decision in your bankruptcy request

Work With a Trustee

If you’re going to file for bankruptcy, be sure to work with a licensed insolvency trustee. The last thing you want to do is try to work through the details of a bankruptcy on your own. A trustee will help you understand the process and the options that are available to you. They’ll also sit down and help you put your documents together so that you have everything you’ll need when you file for bankruptcy protection.

File the Proper Paperwork

If you’ve decided to file for bankruptcy, ensure that you file all the proper paperwork, and that it’s filled out correctly. Mistakes on your paperwork, or failing to file the appropriate papers can delay your case. Not only that, but it can leave you owing debt that should have been discharged. This is particularly true if you fail to include all your debt in the application for bankruptcy. Debts can only be discharged if they’re included in the request for bankruptcy. Failure to include them could leave you owing debt, even after your bankruptcy is settled.

Respond to Creditor Notices

If you’re going to be filing for bankruptcy, make sure you respond to all creditor notices. You may think that you don’t need to respond to creditors since you’ll be filing for bankruptcy, but that’s simply not the case. Creditors won’t know you’re in the process of filing for bankruptcy protection, unless you tell them. Unfortunately, that means your creditors could continue with collection efforts while you’re filing your paperwork. If that happens, your creditors may repossess property that you would have been allowed to keep through the bankruptcy.

Financial Hardships

Going through financial hardships can be one of the most frustrating and frightening times in a person’s life. One of the options that people have to save as much of their financial life as possible is to file for bankruptcy. However, bankruptcy comes with consequences, so just like anything else in life, filing for bankruptcy must be planned and timed carefully. There are a number of factors that must be taken into consideration before meeting with an attorney and filing official papers. To learn more about these factors, read on to learn when you should begin to declare bankruptcy.

After a Mortgage Renegotiation Attempt

One of the ways people attempt to save their homes from being foreclosed on is to file for bankruptcy. Although this is certainly a good route to take, it is always recommended for you to first attempt to renegotiate your mortgage with your lender. This is because once you have filed for bankruptcy, your lender is likely not going to want or be able to negotiate your mortgage.

After You Have Met With a Bankruptcy Attorney

Although you can technically file for bankruptcy on your own, it is never advised to do so. No matter the type of bankruptcy you are planning to file, it can be extremely difficult to go through the process alone. That is why you should always consult with a bankruptcy attorney first before declaring bankruptcy.

Before Promotions and Other Income Increases

If you are expecting a promotion at work or simply expecting to come into some additional money soon, it is important for you to file for bankruptcy before that occurs. That is because the courts are going to use what is called a “means test.” This is basically a look into your current income, which will then be used to determine the type of bankruptcy you are allowed to file. If your income is too high, you may only be allowed to file for Chapter 13 bankruptcy. This type of bankruptcy wipes out only a certain amount of your debts, and the courts will demand that you pay a portion of it back.

After New Debts

Are you expecting new debts to come in? Things such as an upcoming medical surgery should be taken into consideration. If this is the case, you may want to wait until they have settled before you file for bankruptcy. This is because bankruptcy, such as chapter 7, only allows you to wipe out debts that were present when you began to file your papers.

Communicate With Your Attorney

As you can see from the information above, there are a number of factors that you should consider before filing for bankruptcy. If you are unsure of your current state of financial affairs, it is important to communicate with your attorney as they may be able to provide you with the best possible route for you to take.

When to File

You should file for bankruptcy when you have an overwhelming amount of debts to settle without any way to pay them. Talking to an attorney is your best bet. Be sure to be able to produce bank statements and other important documents for your attorney to proceed with your case. Be sure to do everything that your attorney asks of you. That way, your court proceedings will take a lot less time and you will get the compensation you deserve.

Recent Posts

Travel1 month ago

Best Places To Visit In The North Of England

If you live in England, you will know there are many different places to visit for the weekend. There are...

General1 month ago

Green Home Improvement Ideas

In a world where environmental concerns are growing, the concept of “green” has gone beyond a trendy catchphrase and is...

Lifestyle1 month ago

How to Host an Unforgettable House-Warming!

The time has finally come. You have moved into your dream pad, and are officially adulting in your very own...

Autos2 months ago

A Guide to Parking Lot Striping

The journey to a well-striped parking lot begins with the right paint. In this brief guide, we’ll unravel the mystery...

Business4 months ago

Business Tips For Protecting Your Finances During A Recession

In 2023, taking the necessary steps to protect your finances for your business is now more important than ever. The...

Lifestyle5 months ago

Tips For Cleaning Your Trainers

If you’re into your trainers and streetwear, you’re likely to be very conscious of keeping them looking their best! So,...

Marketing5 months ago

Branding Trends For Start-Ups in 2023

Branding is incredibly important as it impacts how your business reaches and connects with its target market. If you’re branding...

Business5 months ago

Avoiding the Wrong Kind of Growth

Growth is vital for any business – some models, like tech start-ups, are built around periods of dramatic, explosive growth...

Business6 months ago

How To Become A Property Developer

There are several reasons why an individual will want to become a property developer. One of the main reasons for...

Tech8 months ago

What Is The Difference Between Cyber Attacks and Cyber Threats?

If you own a business that uses the cloud to manage workloads, you have probably heard of the terms cyberattack...

Marketing8 months ago

3 Types of Marketing Every Small Construction Business Should Do

Construction is a very saturated sector, whether you’re a large or small construction company, so marketing should be at the...

Business9 months ago

How Relevant Life Insurance Plans Can Future-Proof Your Business

Last year, UK inflation reached the highest level that it had been for decades. The markets became unsteady and nervous...

Autos9 months ago

In a Car Accident? Here’s How to Find a Great Lawyer

If you’ve recently been in a car accident, you know that it can be an overwhelming experience. Not only do...

Education9 months ago

Considering Therapy? Here’s a Few Common Therapy Techniques Explained

If you’re considering therapy as a means to improve your mental health, you may be curious about the type of...

home repairs home repairs
Home Improvement9 months ago

Top 5 Home Repairs You Should Never DIY

DIY home repairs are all the rage these days. But before you jump on the bandwagon, there are some things...

Categories

Archives

Trending