When deciding on the right time to file for bankruptcy in Gaithersburg residents must weigh several factors. Anyone who has ever had a lot of debt knows how draining it can be. Not just financially, but mentally and even physically draining as well. Between trying to make minimum (if any) payments, avoid debt collectors and worrying about losing vehicles, their home, or any other property, people in debt have a lot on their plate. Most people want to try to fix their financial problems themselves but there are times when it is best to file for bankruptcy.
The Money Is Just Not There
Most people would agree that if they had the money they wouldn’t be in debt. Part of the process of filing for bankruptcy is credit counseling. Often people don’t realize how much money they actually have. By budgeting and limiting spending they find much to their surprise that there is no need for bankruptcy. The opposite is true as well, unfortunately. If after speaking with a professional credit counselor Gaithersburg families considering bankruptcy still can’t find the money to pay off debts and maintain a household’s expenses, bankruptcy is probably the best option.
The House Might Be Lost
If filing chapter 7 bankruptcy a family’s home is most often taken back by the bank as are all vehicles and anything else used as collateral to obtain credit. For most people facing financial disaster losing their home or car is last thing they need. Thus, they avoid bankruptcy. Only by speaking to a bankruptcy lawyer, however, can they learn about the difference between chapter 7 and chapter 13 which allows them to keep their home, vehicles and any other item credit was used to purchase. Although in some bankruptcy cases the house might be lost it is guaranteed that if a family does nothing and miss payments the house WILL be lost.
Life Circumstances Have Changed
Unpredictable things can happen to anyone. If someone struggling financially is a victim of an accident, divorce or have lost their job and unable to return to an equal-paying job, bankruptcy is probably the best choice. Unpaid debt left to accrue interest will not go away but only get worse. Gaithersburg individuals willing to take an honest and realistic look at their circumstances can determine with the help of a bankruptcy lawyer if they will ever be in a position to repay their debt. If not, bankruptcy will probably be recommended.
No one plans on filing for bankruptcy. Once someone with a mountain of debt is able to look past the stigma and stereotypes and work with trained credit counselors and bankruptcy lawyers they can determine if bankruptcy is the best answer for them. Sometimes wiping the slate clean is the only way to begin moving forward again. Before discounting bankruptcy Gaithersburg individuals should research and consult with professionals.
In order to file bankruptcy Gaithersburg, contact the law office of Goren, Wolff and Orenstein for legal advice.