Something that many people ask themselves when contemplating the bankruptcy process is when the right time will be to file. People may wonder if there is a specific amount of debt that would typically lead to a filing, or whether a creditor taking a specific action, such as bring a lawsuit for collections, is necessary prior to beginning the bankruptcy process. The answer to these questions is simple; there is no single set of circumstances that dictates the best time to begin the bankruptcy process. Rather, the best time to consider a bankruptcy filing is when you ready to free yourself of the burdens associated with overwhelming debts, and give yourself your life back.
With that being said, you might wonder what this looks like in practical terms. Although everyone considering the possibility of bankruptcy will have their own individual timeline for filing, there are certain common factors that may lead us to the point that we affirmatively decide to move forward with the process. One of the most common is if a creditor attempts to go through with the process of repossessing a vehicle or foreclosing on a home. In both instances, bankruptcy can be used as a tool to preserve the vehicle or the home, and help you catch up on the payments through the process of bankruptcy.
Similarly, if a creditor has obtained a judgement and is attempting to garnish wages or levy a bank account, this can also serve as an indicator that it may be time to move forward with a bankruptcy filing. The reason for this is twofold. First, the automatic stay triggered by the bankruptcy will immediately prevent any ongoing garnishment and prohibit the creditor from taking any ongoing action to collect on the debt. Second, the bankruptcy discharge will eliminate the underlying debt being pursued by the creditor, and prevent them from pursuing it further or taking action on the debt in future.
Regardless, neither a collections action nor a repossession is necessary for someone to reach the conclusion that a bankruptcy filing is called for. Bankruptcy is fundamentally a tool that exists to protect those who find themselves struggling with unmanageable debt from the burdens that these debts impose. The best time to file bankruptcy is whenever it is that you personally feel ready to free yourself from the burdens imposed by overwhelming debt and get your life back.
The relief created by a bankruptcy filing is significant and far reaching. It can help us deal with judgements, collections, repossessions, and the anxiety that often accompanies the specter of unamenable debt. If you think you may be ready to feel the relief that the bankruptcy process offers, please feel free to reach out to us!
CALL NOW FOR A FREE STRATEGY SESSION FROM AN MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
We have extensive experience in assisting people through the process of bankruptcy, and we would love to discuss how the bankruptcy process can be tailored to work for you. o, when the time is right, or when you are ready, please don’t hesitate to reach out to Minnesota’s most kind and helpful bankruptcy law firm by going now to www.lifebacklaw.com.
