Filling Bankruptcy Could be an Investment in Your Future

Wait a minute! How would filing bankruptcy be an investment in my future? The answer is that if you are not doing well now financially, it’s the perfect time to file bankruptcy in order to get rid of debts.

If you owe debts that you cannot afford to pay but don’t have any wages that can be garnished or money in the bank that can be taken, or own a house or other property on which a creditor can record a lien, your creditors have no way of getting any money from you. In that case you might think that you don’t need to do anything, because you have no assets that your creditors can take or encumber with a lien.

However, while you might not have anything that your creditors can take or encumber now, that probably will not be true in the future. Once you get a job or start earning more money, put money in your bank account, and perhaps buy a house, your creditors can go after those assets. At that point, a chapter 7 bankruptcy would probably be the solution to get rid of the debts that piled up while you were out of work (or not earning your normal amount of money) without having to pay your creditors anything. However, if you begin earning too much money, you might not be able to file a chapter 7 bankruptcy and would have to file a chapter 13 bankruptcy instead. In that type of chapter 13 bankruptcy, you must make five years of monthly payments to the bankruptcy trustee that will mainly go toward paying your creditors.

The lesson here is that the best time to file a chapter 7 bankruptcy is while you are still in poor financial condition. If you want to get rid of your unaffordable debts without paying your creditors and are in bad financial condition now, this is the best time to file a chapter 7 bankruptcy. If this describes you, contact a chapter 7 bankruptcy attorney today to make an appointment for a free consultation to discuss whether chapter 7 bankruptcy is right for you.