Choosing The Right Course of Action

About four years ago, I could tell that things were turning south with my business. Cash flow was tight, and customers simply weren't coming back to shop some more. I realized that if I was going to keep my house, I would need to do something to resolve my finances. Although it was scary, I decided to meet with a bankruptcy attorney. After I explained my situation, he helped me to understand the process and how to tell if it was a good idea or not. When I decided to do it, things started changing for me right away. This blog breaks down bankruptcy in layman's terms, so that you can decide whether or not it is right for you.

Chapter 7 Bankruptcy: When Is The Best Time To File?


If your financial situation has slowly become unbearable, you might be considering a chapter 7 bankruptcy filing. The decision to file is not an easy one to make but the results can be dramatic and life-changing. Some people spend far too long thinking about bankruptcy. This can lead to even more financial problems and a slower recovery. Read on to find out how important it is to file for chapter 7 bankruptcy protection as soon as possible.

Collection Activities

When you fail to pay your bills, a number of ramifications could occur depending on the type of debt. For unsecured debts, you are not in any danger of losing property but you can be harassed and taken to court by creditors. Unsecured debts often are restricted to credit card debt and personal loan. Secured debts are usually mortgages and auto loans and the loss of property when you fall behind on this type of debt is ever-present.

Court Judgments

If you have not been able to pay your credit card, medical bills, personal loans, and other debts you may have the account turned over to a credit collection agency. These agencies will stop at almost nothing to get you to pay any portion of what you owe because they get to keep some of that money for their services. They can phone you and send you billing notices every day until you satisfy the debt. If your finances are in a great deal of disarray, you may even end up getting sued in court. Not only are not likely to win, but it probably means that further punitive measures are in store. You will owe the original debt, plus interest, plus penalties, plus court and legal costs on top. Your debt burden can easily double if you get a court judgment against you.

Punitive Actions

If you do allow a court case to proceed before you file for bankruptcy, you may now experience a higher level of collection techniques. The court judgment allows creditors and collection agencies access to your pay and your property through the use of wage garnishments and liens. A wage garnishment means that your take-home pay will arrive with a certain portion removed. You will have to make do on less income until the court judgment is paid in full. A lien can also be placed on your real estate, vehicles, and other property that prevents you from selling them until you have paid the debt.

Take Action and File

Before the creditor has a chance to file a court case against you, file your chapter 7 bankruptcy. This filing puts a stop to all collection activity, court cases, wage garnishments, liens, foreclosures and more. Speak to your bankruptcy attorney to learn more.


9 December 2018