Depending on your current financial situation, filing for bankruptcy might be one of the best options you have. That is why we recommend hiring a good bankruptcy lawyer and consulting with them. Most of the lawyers even provide you with a free consultation session, and that session alone can prove to be of great help for you.
In this article, we will discuss some of the worst case scenarios in which you should file for bankruptcy right away. Not filing for bankruptcy in these situations might prove to be dangerous for you in the long run.
Your House is Being Foreclosed
If your house is being foreclosed by your bank, you should file for bankruptcy right away to stop the foreclosure process. The stay issued by the court immediately after you file the bankruptcy case will prevent your bank from foreclosing your house. This will continue unless your bankruptcy case is resolved, or the stay is lifted.
When your house is being foreclosed, both the chapter 7 and chapter 13 bankruptcy‘s can help you out in different ways. You should consult with your bankruptcy lawyer regarding the best type of bankruptcy you should file for. They’ll provide you with filing for bankruptcy aftermath to help you make the right decision.
Your Car is Being Repossessed
In addition to stopping the house foreclosure process, filing for bankruptcy can also stop your lender from repossessing your car. This can also help you even if your car has been repossessed by the lender recently.
Talking to a bankruptcy lawyer can help you in this situation.
You’ve Just Moved to a Strict State
Every state has its own bankruptcy laws which apply to you when you move to those states. But if you have just moved to a state which does not provide you with good exemptions, you can still file for bankruptcy according to the laws of your old state. That is because your bankruptcy case will be filed in the state you hold a domicile certificate for.