When To Declare Bankruptcy


If you’re one of the many thousands of people who have suffered a job loss, you may be considering bankruptcy as a way to eliminate your debts. You need to talk to a bankruptcy lawyer about all of your options before you decide.

There will always be debate around the tricky and emotionally fraught issue of bankruptcy and job loss. One does not automatically follow the other, but you may get to a point where bankruptcy becomes an option that makes the financial sense. After you have suffered a job loss, it can be difficult to find ways of making unemployed help work for you, especially if you are in a situation where you are carrying a large amount of debt.

Declaring Bankruptcy In Illinois

Bankruptcy does not have to be the end of the road for you, but can be a final solution to the debt woes that have been plaguing you and your family. Talk to a bankruptcy attorney if you’re unsure about how to start the process of bankruptcy or your creditors are hassling you. If your creditors become unsure as to your ability to pay them, they will slap a lawsuit on you and try to get their money through the legal system. If you receive a judgment against you as the result of a lawsuit, you will carry that judgment for many years and it can make it impossible to get credit again. Bankruptcy alleviates that burden, as it declares you untouchable, under the law.

Some people do manage to get a little income and think that they can stem the debt tide by paying off small amounts to their creditors. This is never a wise solution, as you should rather be paying any money that you receive into your large debt payments such as your home. If you are unable to pay your creditors and they are threatening a lawsuit then you might just be making the right choice by declaring yourself bankrupt.

Declaring bankruptcy is a way of consolidating and securing the assets that you have against your present and future creditors. If you are in this situation then it may actually be financially wise to take this step in order to protect assets like your home and your vehicles. It does not mean that you will never be able to have a bank account or credit cards again, but it is way of plugging up the hole in the dam wall before it blows wide open. Do not feel that bankruptcy and job loss are dirty words that will follow you around forever. Take each step with a clear head and in conjunction with your bankruptcy attorney in Chicago and resolve your financial issues so that you are able to get out there and start earning again.