The Top Reasons to Never Delay When Filing for Bankruptcy

If I File for Bankruptcy, Will I Keep My Home?

The Top Reasons to Never Delay When Filing for Bankruptcy

The thought of filing for bankruptcy may have caused you great stress over recent months as you learned to cope with the fact that it might be your only option. When it comes to your business, you don’t want to mess around with finances and you want to know what options you have. When it comes to bankruptcy, there are many reasons why you should never delay and you should act as quickly as possible when speaking to an experienced professional. Over time, if you let debt spiral out of control, there can be many harsh effects that will follow you through the rest of your life. Today we would like to take a closer look at these impacts and why you should act as quickly as possible.

Reasons for Acting Quickly 

Ending the Stress: One of the biggest impacts that somebody might feel when they wait to file for bankruptcy is the stress that waiting can have on your life. Perhaps your relationships are under a deep strain and you’re getting behind at work because you’re so worried about bankruptcy or you keep putting it off even though every aspect in your life is pointing in that direction for the results you deserve. Experts have produced research that shows that this long-term stress can have a huge psychological impact on you. 

Credit Impacts: You will almost always receive credit impacts if the creditor decides to move forward and report these debts to major reporting bureaus. This means that there could be a lasting impact that won’t be forgiven when it comes to your credit score. You don’t want serious actions to be taken against you, which is why it is imperative that you speak to somebody as soon as possible about your bankruptcy options for your business.

Entering into Foreclosure or Repossessions: If you have mortgage arrears, specifically for your business, lenders are permitted to pursue foreclosure on your business. If you want to stop these proceedings once they have begun, you will have to pay the arrears in full. 

The Top Reasons to Never Delay When Filing for BankruptcyWage Garnishment: If you have fallen behind on repaying debts when it comes to your business, you might be facing wage garnishment. Creditors will typically have to gain a court order so that they can take you for wage garnishment related to your business, but this direction is not an impossibility. If the courts allow it, a percentage of your paycheck will come out of the garnishment. 

Legal Repercussions: In some cases, you might be sued by the creditor directly for your business debts. You will have to appear in court and the outstanding debt that you owe will be expected in payment.

Speaking with a Professional 

You don’t want your bankruptcy case to turn into a lawsuit that you can’t come back from. At M.J. Watson & Associates, our bankruptcy professionals will help you when you are unsure of your options when it comes to your business and filing for bankruptcy. Whether you choose to go through Chapter 7 or Chapter 11 bankruptcy,  you need to be aware of your options and how you will move past this difficult and life-changing time in your life. Contact us to find out how we can ease the process for you at (214) 965-8240.

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