When to Seriously Consider Filing for Bankruptcy

filing a bankruptcyWhen the idea of filing for bankruptcy comes up, most folks think of it as an issue that is only chosen when everything else has failed. However, for those who actually go through the process, there’s usually not a set moment when one says, now is the time to file. Instead, it’s oftentimes a slow slide into the necessity when everything else as fallen apart. Many folks who arrive in bankruptcy court have already tried other options or, more commonly, froze and did nothing. The latter is normal. The stress, phone calls, bills that can’t be paid, and things falling apart all seem to happen at the same time, overwhelming a person. It’s a natural defense to close up and try to just get away from it all.

As any bankruptcy attorney Selma expert will note, timing bankruptcy is as much a financial decision as committing to a mortgage for a home or applying for a car loan. No one wants to just take whatever is the last option available and utilizing bankruptcy at a point where some key assets can be protected, like a home, makes sense. Unfortunately, many wait too long, and then nothing is left to protect. The legal proceeding simply becomes a paperwork chase to absolve the last of the debts that can’t be seized, caught up in a lien or similar.

The reality is, filing for bankruptcy does not have to be a last resort, but it does need to be applied correctly and with the right commitment. Once engaged, the filer is fully committed to the process. There’s no second-guessing or having cold feet once in the process, and a denial of a filing by the court can end up triggering even bigger problems. A lot of big mistakes can be made in the court without a Mobile AL bankruptcy attorney at one’s side.

Socially, bankruptcy is also a bit of a scarlet letter on a person’s credit history and file. Granted, the stigma of bankruptcy in recent years has gone done quite a bit, especially after the 2009 Recession and many real estate related bankruptcy filings across the country. However, it’s still a point of hesitation when spotted on someone’s file. Bankruptcy is a public proceeding so, like many legal actions, it will show up in a public search on someone’s background when applying for a job, a loan or even trying to rent an apartment.

However, with a qualified bankruptcy attorney, things can turn out very different. First off, if the reason for the financial condition is medical, there are a number of legal protections that can be put in place to help defend critical assets that are needed for basic living and keeping a roof over one’s head. Secondly, bankruptcy timed correctly can help block collectors and creditors from aggressively trying to grab assets, finances, income and similar without going through a full legal review process. This is common when liens are used to attach property without a full trial process. Third, a bankruptcy can block collection lawsuits from making judgments on your assets for specific debtors without addressing to overall issues involved.

Finally, considering there are two different types of bankruptcy involved and available, having a bankruptcy attorney Mobile AL expert like the Loris Bankruptcy Law Firm can really clear up which way to go when a filing really does need to be pursued. Bankruptcy Mobile AL courts are the same as everywhere else; they follow federal law for bankruptcy proceedings. So, having a bankruptcy attorney Mobile Alabama expert on your side from the start can make a world of difference. If you need a bankruptcy attorney Robertsdale availability or the same in Selma or Mobile, the Loris Law Firm can help.