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Is It Too Late To File Bankrupt?

Are You Out of Time?

You’ve given up on paying your debt and balances are piling up with penalties and legal fees. At this point, you don’t see any hope in finding a solution to the debt, but you do have a business prospect coming very soon. There could be a significant amount of money coming up in the near future. You may hit it big with this next business venture and that would solve all of your debt issues. What good would it do for you to file for bankruptcy at this point? It would be easy to think that it is much too late to file bankrupt since you are almost out of the woods financially, but there are many compelling reasons you should know about that could change your mind about resolving your debt sooner than later.

Why File Bankruptcy Now?

1. Bankruptcy will protect your current assets
If you are investing in a new business, you need to keep your current assets to be able to survive in the near future until you get the expected revenue from your new business. A bankruptcy can provide you with the protection you need to protect the current assets you have in order to keep your life functioning normally until your income returns. The bankruptcy protection from an automatic stay that a bankruptcy provides can stop collections activities from taking your remaining cash or assets while the bankruptcy is in process. This protection can last several months depending on the pace at which your local bankruptcy court is processing cases. Discharging debt from your responsibilities will stop any future collection of debt after the bankruptcy is over. This means that once a debt is discharged in a bankruptcy, you won’t be responsible for any payments and you won’t be hearing from any creditors about it at all.

2. Your credit has already been affected by late payments
The bankruptcy itself can have a negative impact on your credit, but, after years of late payments, a credit report may not be your highest priority at this point. It is very likely that your credit score has taken a big hit from past due debt already. Discharging the debt in a bankruptcy can stop the late payment recordings from happening which, in turn, will help improve your credit score in the long run. The key to improving a credit score is to stop re-occurring negative marks on your credit. Each month you are late, a new late payment is recorded on your credit report. A bankruptcy is a one time mark on your report that stays there for 10 years, but it absolutely does not mean that your credit will not improve over that 10 years. Your credit report can immediately start to improve after you file a bankruptcy even though your credit history has a bankruptcy filing in it.

3. Bankruptcy will help you keep your future money from being taken by creditors
The most important protection that a bankruptcy can provide to you is to stop creditors from collecting your money in the future. If you currently don’t have much income, but you see a prospect in the future that will provide you with the income you need, be aware that creditors won’t give up collecting especially when they find new assets you’ve come by. Once the pay days start rolling in from your new business, collections activities from judgments for past due debt can take those assets from you by either garnishing checks or levies on your bank account. If you file a bankruptcy before this income is realized, you won’t have to worry about creditors coming after you for your hard earned money. A bankruptcy court will not be looking at your future income. The bankruptcy trustee and bankruptcy court is going to pay all the attention to your debt history and past finances. They cannot stop a bankruptcy from being filed because your business will be doing well in the future. You should use the opportunity to file a bankruptcy while you can qualify so that debt can be discharged before you don’t qualify for a bankruptcy any longer.


Even if the future ahead looks bright, make sure you are using your options wisely. A bankruptcy may still be in the cards to provide you with a better future and protect your assets for yourself.

If you are interested in more information on filing Chapter 7 or Chapter 13 bankruptcy, contact Bankruptcy Law Professionals at (855) 257-7671 to speak to an attorney about your situation.

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