When to File for Bankruptcy

For many experiencing financial difficulties, you may be trying to determine if now is the right time to file for bankruptcy. If you live in Columbus or central Ohio, The Jones Law Firm is here to help you determine when to file for bankruptcy.

Should I File for Bankruptcy?

Unfortunately, this is not a simple yes or no answer. There are a variety of reasons you may or may not want to file right now.

One such element to review before filing is to see if you qualify for either Chapter 7 or Chapter 13.

You can review the qualifications for Chapter 7 and Chapter 13 bankruptcy on our website.

If you do not qualify for either form, now is not the time to file. Instead, you may want to meet with a financial advisor to see if you can qualify for other debt forgiveness programs or can come up with a payment plan with your creditors.

However, if upon review you have found you qualify for either Chapter 7 or Chapter 13 bankruptcy, then now may be the time to file.

Assessing Your Financial Situation

If you are contemplating your bankruptcy eligibility, there are a few checkoffs you should review. These points include:

  • Are you only making minimum payments on credit cards?
  • Are debt collectors calling you?
  • Are you feeling out of control of your financial situation?
  • Do you rely on credit cards to pay for basic necessities?
  • Are you considering or have you attempted debt consolidation?
  • Are you unsure how much debt you actually have?

If you have answered yes to multiple questions, you need to contact a bankruptcy attorney who can help you wade through the process. Chances are, you qualify for Chapter 7 or Chapter 13 bankruptcy and these issues can be remedied.

Reasons To File

Now that you know you qualify for bankruptcy, you may still wonder if now is the right time to file. We have compiled the most common reasons people do go forward with a bankruptcy filing to achieve a fresh financial start.

  • Job loss or loss of wages
  • Piling medical expenses
  • Divorce
  • Being sued by a creditor
  • Your home is in danger of foreclosure
  • You have accumulated mass amounts of credit card debt
  • You may have to use funds from a 401(k) account to pay bills

Though these are some of the most common reasons to file, there are also a variety of reasons why you should not.

Reasons to Not File

Many people who think bankruptcy is their only option do not look at the long-term and short-term plans available to them.

For example, if upon review of all of your debts you find that you can feasibly pay off all or most of your debts in the next five years, bankruptcy is probably not in your best interest. In the grand scheme of things, if you can make life changes to alter your expenses, that will benefit you more.

Other reasons you may not want to file are:

  • A large portion of your debts will not be erased in bankruptcy (such as taxes or student loans)
  • Your business is not protected from creditors
  • You recently inherited a large estate
  • You have assets that will have to be revoked or repealed
  • You recently transferred assets into someone else’s name
  • You’ve recently made large purchases on a credit card

While you may need to meet with an attorney to see what debts are able to be discharged under bankruptcy, you need to also consider your recent financial activities which may not be permissible under the bankruptcy code.

Some people also worry about the societal stigma against bankruptcy as well as credit score damages. Remember, those things on their own are temporary and should not stop you from seeking bankruptcy if it is in your best interest.

Is Now The Time to File?

If you have done a thorough review of your financial situation and are still unsure if now is the time to file bankruptcy, do not worry. This is a big decision to make, though one that has lasting financial benefits.

Know that by enlisting the services of an experienced Ohio bankruptcy attorney, you not only can have your fears and concerns alleviated but have the knowledge of an attorney to guide you through the process.

Know When to File for Bankruptcy in Columbus and Central Ohio.

If you are asking when to file, you need the legal support of a bankruptcy attorney. If you live in Columbus and central Ohio, you need to know what options are available to you. Bankruptcy attorney Michael Ryan Jones is here to guide you through the process. Contact The Jones Law Firm today for a free consultation to see if now is the time for you to file for bankruptcy.