Filing for bankruptcy sooner vs. later

On Behalf of | Jan 5, 2022 | Uncategorized

Filing for bankruptcy is not something anyone wishes to do without careful thought. Bankruptcy proceedings involve seeking protections in federal court, which could be daunting for some debtors. Others may worry about the impact that a bankruptcy filing has on their credit report. Michigan debtors who think things through might find the process worthwhile, but waiting too long could be the wrong approach. Filing for bankruptcy sooner rather than later may be better.

Moving ahead with bankruptcy filing decisions

Dealing with creditors and collection agencies could be incredibly stressful. Even though laws address creditor harassment, not everyone knows how the law works, so troubling and stressful collection actions continue. Upon filing for bankruptcy, collection actions cease. The filing could prevent a car repossession, eviction or foreclosure as well.

Tremendous financial strain might result if any bank or wage garnishments occur. A bankruptcy filing could put an end to such tactics, too.

Filing for bankruptcy sooner could also serve as a preventive measure. Persons expecting to receive an inheritance might seek an exemption, if applicable, whereas filing for bankruptcy long after receiving an inheritance might complicate the situation.

Bankruptcy and a new financial path

Debtors weighing their options about filing for consumer bankruptcy may need to honestly review their current debt situation. Intentions to get out of debt without going to court could be noble and, in some cases, workable. However, for many, a disastrous debt situation won’t go away without help from the bankruptcy court. The amount owed concerning assets and income could make any plans outside of bankruptcy court too challenging.

Delays with filing for bankruptcy might drag financial troubles out. The faster someone files for bankruptcy, the more expediently the person may take advantage of laws designed to protect consumers.