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3 reasons to file bankruptcy now and not later

On Behalf of | Aug 26, 2019 | Chapter 7 and Chapter 13 Bankruptcy | 0 comments

It may be tempting to put off filing bankruptcy in Colorado. You may want to try everything possible to delay the inevitable. This often leads to spending money you should not spend to try to rectify the situation. Some people resort to using all of their retirement savings before they reach out for help and file bankruptcy. This is not necessary.

Many people mistakenly believe that they will lose everything in a bankruptcy, so they figure they may as well try to spend every last drop of money they have to try to avoid filing in the first place. This misunderstanding often only leads to more financial trouble. The Motley Fool explains that you may be able to keep most of the money you have in your retirement accounts and savings even if you do file. With that in mind, here three other reasons to file now rather than later.

  1. Money for afterwards

Because you will often be able to keep at least some of your assets, which include cash on hand and retirement accounts, you will have these assets after your bankruptcy. They can help you to get your fresh start. The court will not take everything away from you because it understands you need something to start over with after you file.

  1. You have choices

You can choose to file different Chapters of bankruptcy. Chapter 7 and Chapter 13 are the main options individuals choose. Your choice will allow you to control how much of your assets you can keep. In general, you will be able to keep more by filing Chapter 13.

  1. Refresh your finances

If you have been very concerned about filing bankruptcy, then you probably have already considered your different options. If you have tried everything else to avoid bankruptcy, then it probably really is best to file now. You can stop creditors from harassing you, bring accounts current and start a plan for your future that will put you back on solid financial footing without all the worry.

Bankruptcy may not be something you want, but sometimes, it is the best choice. Do not wait so long to file that you use up all of your retirement and savings.