Why Is It A Bad Idea to Rush Into Declaring Bankruptcy
Knowing that bankruptcy might be on the horizon makes many people want to rush into making it official. When you’re desperate, having debts canceled seems like the preferred way out. And you’re not alone! Many people struggle with financial issues. LegalZoom identifies the top reasons that people file for bankruptcy as: unemployment, large medical expenses, seriously overextended credit, and marital problems. Bankruptcy might seem like a relief, and often well-directed bankruptcy can give people a “second chance” with the help of an experienced legal professional. But rushing into bankruptcy can turn out to be an unwise and detrimental option. Why is patience often a virtue when declaring bankruptcy? Let’s look at a few reasons why moving too quickly in a bankruptcy case can negatively impact your future.
Timing is critical
According to Nolo, you can only file for chapter 7 bankruptcy once every eight years, or six years after a Chapter 13 bankruptcy filing. If you file at the wrong time, it will be awhile before you have another chance to correct your mistake. Timing is best left up to bankruptcy experts who have dealt with cases like yours before.
There might be worse financial problems down the road
For example, if you are undergoing expensive medical treatments that you worry about being able to pay for, you don’t want to file for bankruptcy right as the biggest bill is about to hit your account. Legal professionals can help advise you when to declare bankruptcy so that the worst of your debt is canceled before increasing.
You want to consider all of your bankruptcy options
There are several types of bankruptcy available to individuals and each type has different implications, varying results, and can impact your future differently. You want to make sure you choose the option best for you.
Bankruptcy can easily backfire on you!
If you don’t think it through, the effects of bankruptcy can come back to bite you in unexpected ways. A bankruptcy lawyer can talk you through all the possible outcomes of your case, what to expect, and what to consider before you file.
Each Case is Different!
Each situation is unique, which means that someone else’s bankruptcy choice or timeline doesn’t necessarily work for you. Of course, this can also imply a benefit to file quickly. Sometimes it is in your best interest to file for bankruptcy sooner rather than later. For example, many people make the mistake of draining retirement funds before declaring bankruptcy – leaving them with even less than if they had declared sooner. Everyone’s experience is different, that’s why it’s important to talk with an experienced bankruptcy lawyer to see how to move toward your best possible future. The Law Office of Stuart M. Nachbar can provide consultation on your possible and preferred outcomes – no matter how complex your case is! Give us a call at (973) 233 4049 or contact us online today!
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