Differentiating HAVE TO file Bankruptcy clients and WANT TO file Bankruptcy clients.

Although bankruptcy is ONE option to deal with certain financial difficulties, sometimes doing nothing might be a better option. Thus, in an average case the general client’s will fit into one of three categories: 1) Shouldn’t file 2) Have to file 3) and Want to file. Following is a discussion on factors used to differentiate between the Have to File for bankruptcy clients and the Want to file for bankruptcy clients.

A HAVE TO Bankruptcy client generally has an urgent matter usually pertaining to that client’s loss of control over the asset. Including but not limited to;

1. Foreclosures

a. If facing a pending foreclosure, bankruptcy might be an option to consider in order to stop the pending sale and allow some breathing room.

2. Evictions (Unlawful Detainers)

3. Leases with defaults.

4. Judgment collections

a. Garnished Wages, Judgment Liens on Property, Bank levy.

5. Imposition of Judgment

6. Tax liens

If a client falls into the Have to file category, time is of the essence and seeking professional advice should not wait until it is too late. However, if a client does not fall into the Have to file category, Bankruptcy could still be an advantageous option. In this case the client should still consult with a professional to get a better understanding of the benefits and harms of filing for a Bankruptcy.

ALWAYS SEEK ADVICE FROM A LICENSED BANKRUPTCY ATTORNEY.