When Should Someone File For Bankruptcy?

Filing for bankruptcy is a serious decision that can free a debtor from crushing debt payments and allow them to create a reasonable payment plan. At the Law Office of Davis & Jones, P.C., many people ask us "Should I file for bankruptcy?" and if a bankruptcy filing is the best option. We created this page to help people decide if they should file for bankruptcy and why they need an attorney.

A website cannot answer every question and you may have unique circumstances that a lawyer is better equipped to answer. People throughout eastern Utah and the Salt Lake City metropolitan area can discuss their debts at our Taylorsville office in a free consultation. Call us now at 801-261-2244 to set up your free consultation with a knowledgeable lawyer.

What Are The Signs Of Unmanageable Debt?

A medical emergency, divorce filing, loss of job, an extended period of money mismanagement or some other catastrophic event can cause a person to become overwhelmed with debt payments. Many people find themselves taking out loans with high-interest rates or using credit cards to pay other debts, which leads to a difficult to escape cycle of debt. A Chapter 7 or Chapter 13 bankruptcy filing may be a good option for people who cannot afford their minimum debt payments.

Filing for bankruptcy may be the right option if:

  • You time your tax refund to pay debts or basic expenses
  • Your car is about to be repossessed
  • Your home is on the edge of foreclosure
  • You are out of work for an extended period and have no unemployment income or savings
  • You have delinquent taxes
  • You have garnished wages because of unpaid debts
  • You have pending lawsuits for delinquent bills or debts

A bankruptcy filing is often a less expensive option compared to drowning under debt payments and in some cases, a bankruptcy filing can improve a person's credit score. There are restrictions on certain types of bankruptcy filings and if you have filed in the past, you may have to wait to file again. Speaking to our bankruptcy lawyers can help you check if you are eligible for bankruptcy and what you can expect.

Do I Need An Attorney To File For Bankruptcy?

While you can file for bankruptcy without the help of an attorney, there are many factors that can cause a denied or delayed filing. Chapter 13 bankruptcy filings require debtors to create a repayment plan which a judge must then approve. Without the help of an attorney, these plans are quite difficult for a layperson to draft.

While some Chapter 7 bankruptcy filings are straightforward, speaking with an attorney is in a debtor's best interests. Creditors can challenge a Chapter 7 bankruptcy filing and people with a significant amount of income may not be able to file. Chapter 7 filings can also cause a person to lose their home or vehicle if they are behind on payments.

Talk To Lawyers With Nearly 40 Years Of Bankruptcy Experience

Our attorneys have a thorough understanding of bankruptcy law and have guided more than 20,000 clients through the bankruptcy filing process over their careers. Schedule your free consultation at our law firm by calling 801-261-2244 or filling out the contact form.

We are a federally designated debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.