Why Bother to File Bankruptcy?

There are as many different financial situations as there are people who own finances. No one’s financial circumstance is the same. Are there ever any financial circumstances where you should avoid filing for bankruptcy protection?

This personal bankruptcy question was asked during a bankruptcy discussion on the internet in 2011, “Everyone says BK will be a relief. But we have no income coming in and very little to sustain us. If we are going to end up on the street anyway, (no relatives) why should we bother to file? We could exist a little longer on what we would pay the attorney.”

Why bother to file bankruptcy? There are myriads of reasons why you might want to consider filing for bankruptcy protection, but there are only a few reasons you might want to postpone or avoid filing at all.

The main reason you may want to postpone or avoid filing for bankruptcy protection is that you do not have any non-exempt assets for creditors to get, and you live in a non-garnishment state. This means you are virtually collection proof.

Many elderly citizens who live on social security and in states with liberal exemption laws fall into this category. Social security benefits cannot be garnished in most circumstances, and assets that are exempt from liquidation in bankruptcy proceedings are not prime targets for collectors.

The one thing bankruptcy can do for collection proof debtors that are not in the category of the elderly is to provide the automatic stay which prevents collection agencies from attaching or seizing exempt assets. That means you can postpone or avoid filing for protection as long as a creditor has not gotten a lawsuit judgment against you.

The main reason you may want to file bankruptcy sooner, even though you appear to be collection proof like the debtor in the illustration, is because filing can be a positive step forward in alleviating a negative condition. If you do not file, you can almost be guaranteed you will continue to dread getting your mail or answering the phone. Collection efforts normally do not stop just because you are collection proof, but filing can stop the negative effects of collections through the use of the automatic stay and the discharge of bankruptcy.

Filing bankruptcy is how you start rebuilding your financial life, and can be a positive step in the direction of improvement. Once you have been relieved of the stress that can be associated with collection activities, you will more likely be able to focus on the more important things concerned with the financial business of making a living, like getting a job.

You do not necessarily need a bankruptcy lawyer in order to file bankruptcy, especially if you do not have the means to pay one, but depending on the complexity of your particular situation and the amount of assets you have, consulting with a bankruptcy lawyer can be a wise decision.

If you determine you are in need of relief from the stress associated with debt and you live in or around the metropolitan area of Springfield, Massachusetts, contact us here today at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area that will help you with any questions you may have on bankruptcy law.

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