Legal Guide

When Can I File for Bankruptcy?

A legal lifeline for those who are drowning in debt is bankruptcy. Businesses and consumers file court requests asking for their debts to be forgiven. Most of the time, the request is approved. An individual, partnership, or company that has so many debts that they don't think they can pay them might file for bankruptcy, which is a court action in which a judge and court trustee look into the assets and liabilities of the parties involved. Before making any important decisions, you should determine whether filing for bankruptcy is a good option for you. The majority of people and corporations declaring bankruptcy have a lot more debt than available funds to pay it off. Wish to Press The Restart Button? Read on. 

When should you declare yourself bankrupt?

When wondering "Should I declare bankruptcy?" Consider carefully whether you could repay your obligations in fewer than five years. It might be time to file for bankruptcy if the response is no.

What are the alternatives to bankruptcy that you can consider?

Because filing for bankruptcy has major and lasting implications, a person or corporation should think about alternatives, such as asking for short-term loans. It may be advantageous to postpone filing for bankruptcy until there is no other choice.

Why should you declare yourself bankrupt?

If you're declaring bankruptcy, you've undoubtedly exhausted all of your alternatives and worked incredibly hard to get yourself out. You're probably as tired out as your efforts are, and you now see bankruptcy as your last option.

  • Divorce is one of the main reasons to declare yourself bankrupt. Even without considering the financial repercussions of a divorce, the legal fees alone can bankrupt you.
  • According to a study, about 65% of bankruptcy cases are due to medical expenses
  • Excessive credit card use is a major factor in bankruptcy filings. 
  • Job loss is like a hole in the ceiling, letting debt pour in, if you don't have a flow of funds, and this is one of the most common reasons leading to bankruptcy.
  • Natural disasters, theft or property damage, etc, can be a reason. These sudden occurrences might cause financial catastrophes and lead to massive bankruptcy.

Conclusion

So, the option to get out from under a mountain of debt is to file for bankruptcy, and you must get in touch with an expert to get a clear picture. 

 
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