When Should You File for Bankruptcy?

Are you struggling financially? Bankruptcy may be an option to help you get back on your financial feet – but you may be asking – when should you file for bankruptcy? It is a big financial step to take and it can be stressful, overwhelming and emotional. The Law Firm of Seymour and Associates, P.C. is here to help you navigate the legal process and we will provide consultation for your financial situation in the Augusta, GA area.

What Are the Reasons to File for Bankruptcy? 

Have you been faced with unexpected medical bills or funeral expenses? Have you accumulated overwhelming credit card bills or back taxes? There are a lot of things that can lead to unexpected and overwhelming debt, and bankruptcy provides you with the chance to right the financial ship. Here are the main reasons that you may want to consider filing for bankruptcy in Georgia.

Man Holding an Empty Wallet
  • The Money You Owe Far Exceeds Your Income and Assets. Debt can accumulate quickly over time and it can be easy for your debt to outpace your income and get out of hand. When the money you owe each month exceeds the income that you generate and you cannot service the debt and make minimum payments, you will run out of income and assets down the road. When you find yourself in that situation, it may be time to declare bankruptcy.
  • You Have Tried to Negotiate the Debt. With some debt, you can refinance and renegotiate the debt or arrange a different payment plan with select creditors. This is the first step that we recommend you take in the financial process – but when you cannot negotiate the debt, you may have to file for bankruptcy.

What Happens When You File for Bankruptcy?

Ok. You have decided to file for bankruptcy. What happens next? This is where The Law Firm of Seymour and Associates, P.C. can help. The first thing that you need to do is complete a credit counseling session and obtain a certificate that will be included with your bankruptcy documents. When you have completed credit counseling, you will file for bankruptcy with a bankruptcy petition, your financial records and more. The Seymour and Associates Team can help you file the paperwork you need and will walk you through the next steps – meeting with creditors and a bankruptcy judge. When your case is filed, you will need to take a debtor education course and the court will then discharge your debts.

READ MORE: Differences Between Chapter 13 and Chapter 7 Bankruptcy

Not sure when you should file for bankruptcy? We can help you at The Law Firm of Seymour and Associates, P.C. with a quick overview. Contact the law firm today to learn more about your bankruptcy options and debt management!