When Is The Best Time To Declare Bankruptcy?


Do you wait until creditors are hounding you before calling a bankruptcy lawyer? Do you call for legal help at the first sign of trouble? When exactly is the right time to start look at bankruptcy as a viable financial strategy that can help you sustain your assets and move forward into the future.

Bankruptcy and Unemployment

Job loss is one of the biggest reasons that many Americans make the decision to consult with a bankruptcy attorney and file for bankruptcy. The recession has touched almost everything on earth drawing millions of people into unemployment and terrible debt. With the stagnant economy across the nation, it is becoming increasingly difficult for people to service their debt and make repayments on their mortgage loans. Thousands of families with preexisting loans and debts that they may have taken against property have been struggling to pay them off monthly. Others still have had exorbitant amounts of credit card debts yet to be paid, medical bills to be settled, and college loans to be repaid.

With the sudden loss of income, families with heavy debts lose their ability to repay. The creditors however, are never eager to be merciful about the financial hardship that the individual or, family may be going through. Defaulting is never acceptable to your creditors, who want back every dollar of the loan. This can pave the way for a desperate cycle of avoidance and even ignoring debt and creditor calls. People assume that filing for bankruptcy means the end of it all, and even with a mountain of debt hanging over them, they still assume that avoidance is safer than contacting a bankruptcy attorney.

What Happens When You Consult A Bankruptcy Lawyer?

To begin with, your bankruptcy lawyer will start with a full assessment and consultation to make sure that you understand the different types of bankruptcy and which one could be right for your particular circumstance. Second, they will help identify and classify the possibility of exempt property in your bankruptcy filing. Third, they will organize and assess the financial data of the debtor. Fourth, and most importantly, they will help you with a sound financial plan for the future. Experienced and highly qualified bankruptcy lawyers in Chicago have been able to help the people of this community face the recession and the future with their heads held high.