When you’re at the end of your financial tether, you need to start talking to a bankruptcy lawyer about the possibility of filing for bankruptcy. There has been much written about the wisdom of avoiding the final step of declaring yourself bankrupt. However, for many people across the country who have faced job losses, retrenchment and rising debts, it is the only way to avoid losing everything that they have. In fact, bankruptcy may be a way of consolidating your financial affairs in such a way that you are able to face the future and able to create an opportunity for a financial future that offers security instead of running sacred all the time.
Bankruptcy And Your Creditors
No one takes out a loan or applies for credit unless they are prepared to repay it. Some credit plans even have plans to help to guide you over those rough months if you cannot pay, but with many financial institutions tightening their belts against an uncertain future, you need to be aware of what will happen if you fail to make adequate arrangements to pay your creditors. With the reality of the recession, you must face the reality that your creditors still need to be paid. If you default on payments and they file a lawsuit against you, then filing for bankruptcy through a reputable Chicago bankruptcy lawyer may be your very best option.
If you do not have any assets for your creditors to seize, bankruptcy avoids the potential of losing your income if you do become employed again. If you get a judgment against you then it can last for decades, so even if you are employed again you might be in a vicious cycle of debt repayment for your entire life. Declaring bankruptcy through a professional bankruptcy lawyer will protect you from loss of future income.
Protect Your Future
If you do come into some cash and you let your creditors know about it you may be opening the flood gates for more lawsuits and judgments. If you are in a situation where you owe multiple creditors then paying back small amounts and spreading the debt might not be the best solution in terms of the time that it will take for you to repay the loan, and your creditors will not stop hounding you until every last cent is paid. Bankruptcy may seem like a drastic step, but when you talk to your lawyer you’ll find that it’s one of the most prudent ways of securing your financial future against the ongoing hassle from creditors.