Even though many people ask this question every day to a bankruptcy attorney, the decision has to be made by the individual. In some cases, it might not only be the best decision, but it might be the only decision. Although the final decision is the debtor’s, it should not be made alone. A person in financial trouble and considering a bankruptcy filing should take the time to sit down with a bankruptcy attorney before it gets too late. Many people wait until the day that their houses being sold on the steps of the courthouse from foreclosure. In many cases, it’s too late for a bankruptcy attorney to do anything. It’s almost like waiting until you’re on your deathbed from cancer and calling a doctor to see if surgery would fix you. People in debt should heed to the warning signs before the creditors start taking legal action. In most cases, filing bankruptcy will stop any legal action by creditors, if not permanently, temporarily. The problem is, it really complicates things further bankruptcy attorney and could possibly cost the debtor property and or money.
When someone gets to the point that they’re robbing Peter to pay Paul, they should consider this a danger sign and realize at some point they will fail. All it will take is something as small as a mechanical problem with their car and one or more bill won’t get paid that month and it begins. The individual starts sliding down the slippery slope with no way to ever get caught up. This is where filing bankruptcy will stop all the financial craziness. When you’re living paycheck to paycheck, filing Chapter 7 bankruptcy will free up enough cash to be able to live again. You are not alone, many Americans are facing the same problems. Recently, it was reported that the average American has over $16,000 in credit card debt and makes between $33,000 – $38,000 a year. It’s obvious that many of these people are going to end up in a bankruptcy filing because there is no other way out. When you file for bankruptcy the automatic stay is put in place stopping all the collection and legal action against the debtor. As long as the individual is still working, they will be able to quickly recover because all the money that they were spending on the credit card payments will go in their pocket. After filing bankruptcy, most people feel the weight of the world being lifted off their shoulders because all the debt is being put behind them. Many people emerge from a Chapter 7 bankruptcy on their road to becoming debt-free.