A better understanding of what bankruptcy is and how it can help people has helped eliminate the stigma associated with it. Now, the question for those in Akron considering this option remains when they should file for it. The answer may be as clear as the reasons why one ended up experiencing financial troubles in the first place. Just as everyone's struggles can be different, so too can their reasons to file for bankruptcy.
Given the potential repercussions that it can have on one's life, bankruptcy should only be an option of last resort. A bankruptcy will remain on a credit report for 10 years, making the chances of one qualifying for credit or a loan during that time more difficult. Not only that, but many employers now check the credit history of prospective employees. Having a past bankruptcy may cost one a job that he or she is otherwise qualified for.
Yet even with having to face those consequences, those whose debt has been overwhelming may find bankruptcy to bring a welcome relief. That may be especially true for those dealing with the financial consequences of a major life event, such as a divorce, the loss of a job, or a major medical crisis.
Aside from the question as to when one should file is the question of which bankruptcy will best help provide him or her with relief. Often, the decision to file a Chapter 7 versus a Chapter 13 bankruptcy is a determination made after an examination of one's current financial status by the court.
With the answer of when to file for bankruptcy being different for everyone, one may wish to consult with an expert while reviewing his or her options. A bankruptcy attorney may just be the expert he or she is looking for.
Source: BusinessDay "How to know when to declare bankruptcy" Feb. 10, 2014