If you contemplate filing for bankruptcy relief then you should be well aware of what it means in both short and long term. It is a crucial financial decision and one which must not be taken lightly. This is something into which you need to put considerable thought before going ahead and filing according to Lexington, KY bankruptcy lawyers.
There are many pre-requisites, procedures, and legal repercussions when it comes to filing for bankruptcy, but we will briefly take a look at some of the most crucial factors that one must consider prior to filing for bankruptcy.
According to Kentucky bankruptcy attorneys, some of the legal factors that must be addressed are:
Can you pay back your debts outside of bankruptcy?
Bankruptcy really should be the last resort according to financial and legal pros in this arena. If there is a possible or conceivable yet lawful way through which you can handle your debts and pay them back which does not involve declaring bankruptcy then you should handle them outside of bankruptcy.
For instance, if you happen to have a lot of credit card debts you should first determine whether or not you have the financial resources to pay it off. If you are able to somehow afford to pay it off then you probably can consolidate the debts into one single loan or simply settle your debt with the credit card company. If you need to know how you can make your credit card loans easier to pay off, then you ought to consult a bankruptcy legal pro as soon as possible.
If the debts burdening you are other types of debts such as mortgage payments or taxes, then there are also ways in which you can amend your pay back structure and scheme to make it more affordable (the premium maybe dropped and the period maybe lengthened, etc.) or in case of taxes you could sit with officials from the IRS itself and sort out or customize a payback plan that actually works for you.
You do not want to be like Alan Harper (Jon Cryer) in the show Two and a Half Men who was always broke and so broke he could not even live on his own. He spent years living with his brother being disrespected since he was not living on his own. He may not have been bankrupt but he was close to it. His alimony payments were ridiculous but that is another story.
You want to be on top of your expenses. You do not want to be like Alan Harper!
Are creditors suing you?
Lexington, KY bankruptcy lawyers point out that the next thing to consider will be whether or not the organizations who have loaned you the money are taking legal civil action against you. If a lawsuit has been filed and you do not defend yourself or oppose the lawsuit then generally a verdict will be issued in the favor of the creditor.
However, if you file for bankruptcy then it will essentially delay or seize the lawsuit by placing an automatic stay on the majority or even all collection actions.
Hire a bankruptcy lawyer as soon as possible
Irrespective of whether you have already decided to file for bankruptcy or are still contemplating it, we highly recommend that you reach out to a sagacious Kentucky bankruptcy lawyer to understand the laws surrounding bankruptcy and what it will mean for you and your family if you do file for bankruptcy.
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