When Should I File for Bankruptcy... and Why?

Filing for bankruptcy is such a private and immense decision. Second Start would like to help you with your decision by educating you a little about when you really should file for bankruptcy. Bankruptcy is a step in the right direction to help you move out from under the heavy weight of debt and into a more stress-free financial future. However, it is important to know whether bankruptcy is right for you.

If things are bad enough that you are being threatened with home foreclosure, car repossession, or simply refuse to answer your phone because you are afraid of harassing calls from collection agencies, then you might be in need of some help. When you live a life full of worry, stress, and constant depression about your financial burdens, then you need to be aware of the fact that filing bankruptcy may be the option and the answer that you have been looking for.

What is Bankruptcy?

Bankruptcy is a legal procedure provided for those who are overwhelmed by a financial crisis and cannot meet the demands of their obligations. Bankruptcy is available to relieve the financial burdens and offer a fresh start.

There are many misconceptions about bankruptcy out there. The main one is that bankruptcy will give you bad credit. Not only is that statement false, but it is likely that your credit is already damaged and bankruptcy can actually help to repair your credit. Another misconception is that by filing bankruptcy you are forced to forfeit over your property. Yet again, this is just not the case. Every case is different and there are several circumstances and instances in which you may retain your property. That is why having an experienced attorney on your side is critical, as you will want to know all your options.

At Second Start, P.L.L.C., we assist our clients in becoming debt-free and obtaining a stress-free financial future. are dedicated to proving that filing bankruptcy can not only eliminate debt, but also improve credit and reduce financial burdens. By eliminating common misconceptions that banking institutions and collection agencies prefer you to believe, those suffering from stressful debt related issues will have a better shot at making a fresh start.

Our main goal is to help you find the relief you need through debt elimination. After we get to know you and fully understand your financial situation, we will help you choose which debt-relief solution is right for you, whether that may be Chapter 7 bankruptcy or Chapter 13 bankruptcy.

How Can Filing Bankruptcy Help Me?

Filing for bankruptcy can have many impacts. For instance, bankruptcy can relieve you of your unsecured debt that you cannot pay for, such as medical bills, utility bills, bank loans, credit card charges, accumulated late fees and overdraft charges, business debts and more. Not all unsecured debt is easily dischargeable. Please see Chapter 7 for a more in-depth explanation.

Another impact that bankruptcy can have is to stop harassing credit collectors in their tracks. After you file the bankruptcy petition, the “Automatic Stay” protection immediately works to prohibit calls from collectors. Furthermore, creditors may not bill, threaten, harass, or sue you. In fact, they cannot take any further actions regarding your debt or make any attempt to collect.

Filing a bankruptcy petition forces even secured creditors to obtain permission from the court to repossess your car or foreclose on your home. And bankruptcy can allow you the time and the opportunity to catch up on your payments on your home or car.

Understanding the Bankruptcy Code

Title 11 of the bankruptcy code offers various forms or “chapters” of relief. The chapters most commonly used by consumers are the Bankruptcy Reform Act (usually referred to as a Chapter 7) and Chapter 13. Chapter 7 is for persons wishing to be free from debt who cannot afford to pay back a significant portion of their unsecured debt. Chapter 13 is for those who wish to pay a portion of their unsecured debt back and can afford to do so.

While Second Start has made every effort to provide valuable information regarding Chapter 7 and Chapter 13 bankruptcy, there is so much more to cover before deciding which debt-relief step is right for you. Please call for your free initial consultation to discuss whether Chapter 7 or Chapter 13 is the best approach for your situation. We are standing by to assist you in the discovery of a fresh financial future.

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