Our Bankruptcy Blog

What To Do If You Are Considering Bankruptcy

There are a lot of misconceptions about bankruptcy. Some people think that it’s only for people who have made really bad financial decisions, or that it’s a shameful thing to do.

But the truth is, bankruptcy might be the best solution for your current financial situation. Here are some tips on what to do if you’re considering bankruptcy-gather all your information, speak to a professional, and make a plan.

What is bankruptcy and how does it work?

Bankruptcy is a legal status of a person or organization that cannot repay the debts it owes to creditors. It is a legal proceeding in which a person or business can relieve their debt.

In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor. Bankruptcy is not the only option for debtors who are unable to pay their obligations. Likewise, there are several types of legal insolvency proceedings that may be applied to an insolvent company or individual.

Bankruptcy should not be confused with insolvency, which is the inability to pay debts when they are due. A company that is insolvent may still be able to continue operations and repay its creditors over time through a reorganization or refinancing plan.

The pros and cons of bankruptcy

what to do when considering bankruptcy

There are pros and cons to filing for bankruptcy. Some of the pros include-the debtor is able to discharge certain debts, the debtor can get a fresh start, and the process is usually over in a few months.

Some of the cons include-the debtor risks losing property, the credit rating is damaged, and it can be difficult to get credit after bankruptcy. Therefore, you should not take bankruptcy lightly-it is a serious decision that you should discuss with a professional.

If you are considering bankruptcy, the first thing you should do is gather all of your financial information. This includes your income, debts, assets, and expenses. You will need to provide this information to your attorney or bankruptcy trustee.

Once you have all of your information, it is important to speak with a bankruptcy attorney about your options. Bankruptcy is not right for everyone, so it is important to get advice from someone who knows the ins and outs of the process.

When should you consider bankruptcy?

Bankruptcy is a last resort for people who are struggling to pay their debts and have no other options. If you’re considering bankruptcy, there are some things you need to know.

Speak to a professional – an attorney or credit counselor can help you understand your options and decide if bankruptcy is the best solution for you.

Finally, make a plan and figure out how much money you can afford to pay each month and start building up a savings account so you can start rebuilding your credit score.

How to know if bankruptcy is the right choice for you

Bankruptcy is not a decision that one should take lightly. If you’re considering it, there’s a good chance that you’re in a lot of debt and you’re feeling overwhelmed. But before you make the decision to file for bankruptcy, there are a few things you need to do. Gather all your information, speak to a professional, and make a plan.

Bankruptcy is not the right choice for everyone, but it might be the best solution for your current financial situation. So, it’s important to remember that bankruptcy is not a cure-all-it will stay on your credit report for 7-10 years, and it will impact your ability to borrow money in the future. But if you’re struggling with debt and you don’t see any other way out, bankruptcy might be the right choice for you.

 

Schedule Your Bankruptcy Consultation with Parker & DuFresne

 

If you have any other questions about the process of filing for bankruptcy, be sure to contact an attorney.

Contact us today to learn more!

If you’re thinking about filing for bankruptcy in Florida, it’s important to meet with a bankruptcy attorney. You can better understand your specific situation and the types of relief that might be available to you.

Call us today for a free consultation and we’ll get you on your path toward financial freedom.

Where Can I Find Help?

Dealing with bankruptcy doesn’t have to be a single-person job. The bankruptcy lawyers at Parker & DuFresne will help you determine the best course of action to help you get out from under your debt and move forward to a debt-free future.

Call today at 904-733-7766 for a free consultation, or click the button at the top of the page to schedule online.

Parker and DuFresne

Parker and DuFresne
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