Generally, many who consider filing for bankruptcy are unsure when they should resort to this option. This process can help eliminate debt and provide a financial fresh start, but it’s not without consequences. If you wish to declare bankruptcy, it’s necessary to understand that this will impact your credit score for years after you file. However, for many drowning in debt, this is worth it. If you think filing for bankruptcy is in your best interest, you should keep reading to learn when to declare and why you need a Memphis, TN consumer bankruptcy lawyer to help you through this process.
When Is the Right Time to Declare Bankruptcy?
If you are considering declaring bankruptcy, understanding the timing of this is crucial. Generally, this should be a last resort. It’s in your best interest to explore all other options before filing. If this is your only viable choice, you should proceed with filing.
You can also ask yourself several questions to determine if this is in your best interest. For example, if you can only afford to make minimum payments on your credit card, bankruptcy may be right for you as you’re likely accruing high interest on the remaining balance on your card.
Similarly, if your payments are higher than your monthly income, this can be a sign that bankruptcy is right for you. Generally, it’s best to ensure your monthly income exceeds your payments so you can stay on top of them and have additional funds in case of emergencies.
How Do I File?
If you wish to declare bankruptcy, it’s in your best interest to first consult an experienced attorney. They will review your payments and other options, like debt consolidation, to determine if this is in your best interest. If you have exhausted all other options, ensuring you have a lawyer is crucial as they will help guide you through the process of filing.
Additionally, your attorney can help you decide which option – Chapter 7 or Chapter 13- is best for your circumstances. Similarly, they will guide you through the means test to determine if you are eligible to file for Chapter 7.
This process is incredibly complex, with many documents that must be completed correctly and filed on time. As such, letting an attorney with the necessary experience handle these issues so you can focus on regaining control of your finances is crucial.
At the Arnold Law Firm, we understand that declaring bankruptcy can be a complex and anxiety-inducing process. However, many find that it’s worth the stress as it provides a financial fresh start to get out of debt. Additionally, you can reduce the stress by allowing one of our dedicated team to guide you through this process. Schedule your free consultation today to learn how we can help you through these complex times.