Is it Time to File for Bankruptcy? 3 Things You Need to Know

Filing for bankruptcy is a big decision, and it's one that can be quite intimidating to make. Before you make the decision to file for bankruptcy, there are a few things you need to know.

Most adults struggle financially at some point in their lives. For many adults, finances may be tight for a few weeks or even a few months, but things always turn around. What happens if they don't turn around, though? What happens if you continue to struggle to pay your bills and are unable to cover your financial expenses and debts? If you've been struggling financially for a long time and can no longer may minimum payments or any payments at all, it may be time to consider filing for bankruptcy. Before you rush to file, however, there are a few things you need to know.

1. You are not alone

Although filing for bankruptcy may seem like a private or isolated choice, the reality is that in 2016, nearly 800,000 people filed for bankruptcy in the United States. Your reasons for filing for bankruptcy may be quite personal. Perhaps you lost your job and were unable to get another one. Maybe you have a disability that is preventing you from working enough hours. Maybe you lost a source of income or recently experienced unexpected personal costs. No matter what your reasons might be for filing bankruptcy, keep in mind that each year, many other adults come to the same conclusion that bankruptcy may be able to give them a fresh start in moving forward.

2. It may offer hope

For some individuals, financial hardships are a temporary experience. For others, trying to claw out from a mountain of debt can seem impossible. In these cases, it may be appropriate to file for bankruptcy. Approximately half of all bankruptcy decisions are related to medical debt, rather than credit card debt or personal spending habits. Keep in mind that bankruptcy will have some long-lasting effects, particularly on your credit score and ability to obtain loans; however, if you cannot make payments on your debt and are struggling to move forward financially, it could be the right decision.

3. Your lawyer is an essential asset

The process of filing for bankruptcy may seem confusing or challenging at first, but the right bankruptcy attorney can help you. Your lawyer will talk with you about your financial situation and make sure this is the right choice for you. They'll help you explore the pros and cons of filing and will answer any of your questions related to filing. Understand that there are different types of bankruptcy, including both Chapter 13 and Chapter 7. Your lawyer will help you evaluate your personal financial situation and let you know which choice would be best for you.

Don't wait to get started. Seek the help you need and get your finances under control, once and for all. If you believe filing for bankruptcy could be the right move for your life, reach out and talk with a lawyer today.