When is the Best Time to File Bankruptcy?

Choosing to file bankruptcy is never an easy decision. There are certain ramifications that come with doing so. However, if you are considering going this route, it’s important to know when to file bankruptcy.

In addition to knowing when to file, you should also know that there are two types of bankruptcy available to individuals: Chapter 7 and Chapter 13. Chapter 7 bankruptcy forgives your debts while Chapter 13 devises a plan that allows you pay back some of your debt while the rest is forgiven. Which type you file depends on your financial situation and your ability to pay back debts.

Generally speaking, there are specific reasons why you would want to file bankruptcy. If you are absolutely unable to pay back your debts timely and in full or if you have reached out to your creditors to negotiate a way to pay and they refused, bankruptcy might be your only option. Additionally, if your creditors or a collection agency has been calling you constantly to get their money back, filing bankruptcy will immediately put a stop to it thanks to an automatic stay. By law, they are required to cease contact at that point.

The following situations are an indication that you should file bankruptcy:

• You’re being sued for delinquent debts
• You’ve been unemployed for a long time, have no unemployment benefits and very little to no savings
• Your landlord is trying to evict you
• Your vehicle is going to be repossessed
• Your wages are being garnished
• Your home is going into foreclosure

If you are in Virginia and plan to file bankruptcy, you need Canfield Wells on your side. The bankruptcy lawyers in Hopewell VA will assist you every step of the way. When you consult with a Richmond bankruptcy attorney, you will be able to breathe more easily. Contact bankruptcy lawyers in Hopewell VA, Canfield Wells, to speak with a Richmond bankruptcy attorney immediately.