Bankruptcy: Why and When to File

The prospect of declaring bankruptcy can be a promising one, chock full of the possibility of erasing certain financial obligations, finally having peace at home without the incessant ringing of the phone and ominous creditors demanding payment and moving forward without devastating debt. At the same time, the process can be daunting, leaving extensive imprints on financial aspects of life. Securing any kind of credit becomes difficult, checking and savings accounts become complicated and arduous to retain and common components of human life, such as purchasing a car or home, finding a rental or even getting insurance can be disheartening. In most cases, obtaining a bankruptcy lawyer is ideal in ensuring that the type of bankruptcy, reasons for the declaration and procedures are in the best interest of the client.

People declare bankruptcy for a myriad of reasons: overwhelming medical bills, lost wages that disallows the ability to honor financial obligations, to stop foreclosure on a property or to prevent repossession, stop harassing creditors seeking payment, to receive aid or additional time for student loan repayment or to end garnishments. Whatever the reason, bankruptcy is a serious, intensive process that is best completed with the help of an experienced lawyer.

There are two fundamental kinds of personal liquidation: Chapter 13 and Chapter 7; both forms of must be filed in federal bankruptcy court and specific requirements must be reached before one is able to file. From the moment the chapter is filed, an immediate restraining order against any and all creditors is issued to offer security and safeguard against these bill collectors.

In a current time where the state of the economy is unpredictable and erratic at best, individuals are looking toward bankruptcy as an option more than ever before. Debts are piling up, the ability to retain and keep a job is becoming more and more difficult and financial obligations are mounting as is the inability to make regular repayments. The medical community continues to demand high payment for standard procedures;. Insurance companies persist with the demand for increased premiums and augmented co-pays and the American dream of home ownership has become tarnished with high insurance and property taxes, and the helplessness that ensues when a mortgage payments falls behind.

Lawyers are not a required component, but securing an experienced lawyer can offer increased security, veteran advice and peace of mind when dealing with the complicated paperwork and court procedures. Bankruptcy and the decision to actually file is a personal one, but a choice that can be counseled and advised upon with the assistance of solid law representation. At the end of the day, personal situations, future prospects, financial obligations and the desire for peace of mind become the underpinning for considering the insolvency process. How much those individual aspects of life are worth are in the hands of the person involved.