Your bills are mounting. There are debts that you can’t pay. Your finances seem overwhelming. If this sounds like you, you may be considering bankruptcy as a way to get a fresh start. Bankruptcy is a helpful tool that can get you back on your feet and stop the stress of falling into a financial black hole. But it’s important to file for bankruptcy at the right time.

How do you know when to file for bankruptcy in Las Vegas? You and an experienced Las Vegas bankruptcy lawyer can work together to determine the best time to file according to your specific circumstances. Learn more about when to file bankruptcy here.

Planning To File Bankruptcy

Assessing Your Financial Situation to Decide If Bankruptcy Is Right for You

To determine if bankruptcy is right for you, look at your finances. Do you owe more than you can afford to pay? Are you accumulating more and more debt with no way out? Here are some questions to ask yourself as you assess your financial situation:

  • Have you had unexpected debts like medical bills or other unusual expenses that are unlikely to happen again?
  • Are you making only the minimum payments on your credit cards or no payments at all?
  • Do debt collectors call you?
  • Have any debt collectors taken legal action to try and collect the debt?
  • Do your finances scare you?
  • Is there a high amount of debt in your name but no plan to pay it off?
  • Are you unsure of the total amount of debt that you owe?
  • Can you pay for your necessities from your income, or do you pay for needs with credit?
  • Are your interest rates rising because of missed payments?
  • Have you already slimmed your budget but you’re still coming up short?
  • Do you have personal things that you want to keep like your home, car, and personal items?
  • Have other methods to get your finances under control failed?

If you answered yes to one or more of these questions, bankruptcy might offer the fresh start that you’re looking for. Bankruptcy is the right choice when your debts are overwhelming. When you have the kinds of debts that are dischargeable in bankruptcy and no other way to get out from under the debts, bankruptcy may be the best option.

Situations Where It May Be Best to Delay Filing for Bankruptcy

There are some situations where it may not be the right time to file for bankruptcy. Bankruptcy may not be the best choice for you right now, or you may not be in a situation where the pros outweigh the cons. Here are some circumstances where it may not be the best time to file for bankruptcy:

You had a recent spike in income – The bankruptcy court looks at your income from the proceeding months to apply the means test and determine your eligibility to file for bankruptcy. If you just had a spike in income, you may not be eligible to file. If you wait a few months, your average income may come back down to realistic levels so that you’re eligible to file.

There’s more debt coming soon – When you receive a bankruptcy discharge, you must wait a certain number of years before you file again. If you expect to have more debt in the near future, it may be a good idea to wait until you have a complete picture of your debt. It’s essential to deal with the entire financial situation when you file for bankruptcy. If there’s more debt on the horizon, right now may not be the best time to file bankruptcy.

Filing For Bankruptcy

Small payments for unsecured debt are all you’re missing – If you’re only unable to make small payments for a small amount of debt, bankruptcy is probably not what you need. Instead, you may need to renegotiate your debt or find other ways to resolve the debt. Even though it may make you nervous to have an outstanding debt, the process of the creditor collecting the debt is a long process. You likely have time to resolve small amounts of debt without needing to use the bankruptcy process.

Creditors calling is your biggest complaint – The Fair Debt Collection Practices Act (FDCPA) can help you put a stop to creditors calling. If you’re receiving debt collection calls, you can invoke the FDCPA to stop the calls. It doesn’t make your debts go away, but it forces the creditors to stop calling you. If your primary goal is to stop calls from creditors, the FDCPA may provide the relief that you’re looking for.

The debts you have are non-dischargeable in bankruptcy – Not all debts qualify for bankruptcy. If your debts are child support or student loans, there’s a good chance that bankruptcy isn’t going to provide the help that you’re looking for. It’s important to meet with an experienced bankruptcy attorney to get a complete picture of what assets can be a part of the bankruptcy proceeding.

Bankruptcy Is the Right Choice If You Owe More Than You Can Afford to Pay

The most basic test for filing for bankruptcy is whether you can afford to pay your debts. Bankruptcy may erase your debts outright, or it may allow you to pay some of your debts over a few years. When you can’t see the light at the end of the tunnel, bankruptcy may be the right way to find relief.

Do You Have to Be Completely Broke to File for Bankruptcy?

It’s okay to have a little bit of cash on hand when you file for bankruptcy. You don’t have to be completely broke without even a dollar in your pocket. A little bit of cash can give you options for filing fees, redeeming your car or other things that can help you get the result you’re looking for in bankruptcy.

Is It the Right Time to File for Bankruptcy? Ask Our Las Vegas Bankruptcy Lawyers

Are you overwhelmed with debt? Are you wondering if it’s the right time to file for bankruptcy? Our Las Vegas bankruptcy lawyers can help. We can help you understand how bankruptcy might impact your situation if you decide to file. We can help you determine if it’s the right time to file for bankruptcy. Call us today to talk about your case. We can’t wait to meet you.