No one really wants to file for bankruptcy, it’s like admitting you’ve failed. Still, if you find yourself in a situation where you’re borrowing more money just to eat and survive, and at the same time borrowing more money to pay off previous debts, filing for bankruptcy might be a prudent path to take. If you can’t juggle all your current debt and have no prospect of increasing your income any time soon, then it’s time to at least consider the concept.

Going deeper and deeper into debt won’t do you any good, nor is it fair to your current creditors or those you might seek out in an attempt to “take Peter to pay Paul.” If you keep juggling for too long, you’ll see everything come crashing down. It is much better to go bankrupt with a plan. If you do it right, you may find the whole experience much less painful than you might have imagined.

Filing bankruptcy will give you a chance to start over

Just think how wonderful it will be to get out from under all that debt. The debt that prevents you from moving forward and does not allow you to go back, stuck in a routine. Imagine all that financial stress disappearing instantly. It may be time for you to consider filing for bankruptcy.

It is not a decision you should make lightly, nor is it a move to stop paying the legitimate debt you owe. It’s just that sometimes people get into bad situations. Generally, it is a series of events, the accumulation of which leads down a path that ends in a cliff.

There will be some assets you won’t be able to keep and some debts you won’t be able to pay off. There will be tough decisions to make, but if you plan it right, it could be the smartest move you’ll ever make.

Why it is important to hire a bankruptcy lawyer

There are some things we might be able to do ourselves, but without the right prior experience it could lead to disaster. Filing bankruptcy can be one of those things. The best bankruptcy attorneys will usually allow you a brief free consultation to explain the basics of bankruptcy, usually 30 minutes or so.

You should take advantage of this. Bring your list of questions and a list of all your debts and sources of income. You have to be honest with the reality of your situation to get the right answers and ask the right follow-up questions.

If you file bankruptcy on your own, that’s it. You are on your own. Bankruptcy courts, judges, and trustees cannot advise you, and be careful about getting advice online. A bankruptcy attorney can review your exact situation and all your assets and advise you which assets you can keep and which you will have to turn over to the court or to your creditors.

A bankruptcy attorney can also advise you on which creditors you should continue to pay and which ones you should stop paying while you are in the process. Also, any tax ramifications you are dealing with or may incur.

A lawyer on your side can also help you as a powerful negotiator who is on your side and on your team. Maybe he can reach an agreement with his main creditors; car loans, home loans, credit cards and the IRS, and give up bankruptcy? You won’t know until you ask. Remember that filing for bankruptcy has consequences, but also benefits. Make sure you know the facts.

When is the best time to file for bankruptcy?

Once you’ve consulted with a bankruptcy attorney and know all the relevant information, you’ll want to strategically plan when to file. matter. Why does that matter? Well, depending on the type of bankruptcy you choose, you may be using an “average income” format, in which case it matters when the average begins and ends.

Perhaps, you have real estate that is about to be foreclosed on, if so, you will want to file it before foreclosure. If you’re preparing for a mortgage payment modification, that could also change the optimal time to file for bankruptcy.

If you are going through divorce proceedings, filing for bankruptcy can be more complicated and expensive. Perhaps, on the other hand, it makes more sense to you. This is yet another reason why you need an experienced bankruptcy attorney to help you through the process from start to finish.

Do you have big expenses coming up, unavoidable costs that you will incur? Do you have future costs that you are already obligated to pay that are about to require payment?

Are you being bombarded by credit collection agencies demanding money you owe but can’t pay? Have you stopped paying your rent or house? Are you using your retirement money to pay living expenses and bills? Generally speaking, retirement accounts are safe, so you may want to file bankruptcy before you empty your retirement account, obviously you’ll need it later.

In conclusion

Did you know that the most common time people file for bankruptcy is in the first quarter, after Christmas expenses and before taxes are paid? Did you know that most people use their tax refunds to partially pay off their bankruptcy filing? Some people file for bankruptcy in the first quarter as a New Years Resolution to get out of debt in the new year.

These may seem like good reasons to choose the first trimester to file, but they certainly aren’t the most important reasons to choose the best time. Call a law firm to talk and figure this out together. You need a plan, one that makes sense to you.

Why not talk to a bankruptcy attorney about your specific situation and then have them help you design a plan? You know what they say; “Sometimes, timing is everything!”