Deciding To File For Bankruptcy
If you are over your head in debt and struggling to make your car, mortgage or credit card payments, you may be considering bankruptcy as an option for getting debt relief and obtaining a fresh financial start. Deciding whether or not to file for bankruptcy is a difficult and emotional process. It is something that most people would generally like to avoid, and sometimes it is not necessary. In other cases, though, bankruptcy is a viable method of stopping harassment from bill collectors, garnishment of wages and even foreclosure of your home. But how do you know whether or not your should file?
There are both positives and negatives associated with bankruptcy. For many people, one of the most appealing aspects is that declaring bankruptcy immediately gives your creditors notice to stop trying to collect money from you. The law prohibits them from calling you, sending letters, filing lawsuits or garnishing your wages once you have declared bankruptcy.
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Unfortunately, there are some negative aspects to going through bankruptcy. First, and most obviously, it has a very negative impact on your credit score. Once you file, a Chapter 13 Bankruptcy shows up on your credit report for seven years, and a Chapter 7 Bankruptcy shows up for 10 years. This not only affects your ability to obtain credit in the future, it can also have a negative impact on your chances of getting a good job or having a rental application approved. Also, bankruptcy doesn’t make things like student loans, mortgages or taxes go away, and you could lose nonexempt property if the court orders it to be sold off to pay your debts.
When possible, it is always best to work out payment plans with your creditors as opposed to filing for bankruptcy. You should also look into debt consolidation, credit counseling and loan modification. There are some situations that make this impossible, though, and bankruptcy may be inevitable. If you have been out of work for an extended period of time or you have a home that’s nearing foreclosure, pending lawsuits for past due debts, delinquent taxes or wages that are being garnished, you most likely need some sort of help to stop yourself from drowning in debt.
Don’t make the decision of whether or not to file for bankruptcy on your own. Now is not the time to avoid reaching out for help because you feel guilty or ashamed. You need to talk to a qualified and experienced bankruptcy attorney. A qualified bankruptcy attorney is someone who fully understands bankruptcy laws and has the best interests of his clients in mind. When you contact The Law Offices of Eric L. Nesbitt, P.C., we will provide you with a free consultation to help you decide whether filing for bankruptcy is in your best interest.
If you live in the Denver area and are considering bankruptcy, schedule your free consultation with a bankruptcy attorney by calling (303) 741-2354 today.
Eric L. Nesbitt, Esq.
Law Offices of Eric L. Nesbitt, PC
Phone 303-741-2354
Email Us
Nesbitt Law Offices Website
