If you’re facing financial troubles, sometimes the best path forward is to file for bankruptcy. Many people shy away from this option, however, putting it off as a last resort—until they find themselves suffering serious consequences, like a repossessed car. Here, the attorneys of The Gil Law Firm in Dothan, AL, explain why you should not put off exploring the options of Chapter 7 or Chapter 13 bankruptcy.
3 Reasons to Get Proactive About Bankruptcy Filing
1. Avoid Lawsuits
You cannot outrun your creditors forever. If they lose their patience, they may take legal action to try and get what is owed to them. A lawsuit will cost you more money if you decide to hire an attorney to contest it. Ignoring it won’t do you any good either—a judge’s ruling against you in this case can result in punishments from garnished wages to a levy on your bank account.
2. Save Money
Bankruptcy will save you money in the long-term, as it will discharge part, or even all, of your debts. Most unsecured debts can be essentially cleared without payment or via reduced-rate payment plans. Filing should ultimately end up costing less than what you would have paid if you continue to try and clear the debts.
3. Safeguard Your Assets
Filing for bankruptcy is a smart move if you want to protect your assets, including motor vehicles, your home, and retirement funds, among others. Imagine your car is repossessed and you no longer have a way of getting to work, putting your job in danger. Certain property exemptions granted by bankruptcy courts ensure that such valuables are protected.
Finally, filing for bankruptcy will spare you a lot of stress in the big picture. You can get creditors off your back and start planning for a more financially sound future. If you think bankruptcy might be an option for you, contact The Gil Law Firm. Located in Dothan, they help people throughout Alabama, Georgia, and Florida with everything from Social Security disability to personal injury law. You can view testimonials from their clients online. For a consultation, call (334) 673-0100.