According to a law review posted this year, the longer an individual delays in filing bankruptcy the more difficult it gets. This not only damages the person financially, but it affects his or her well-being or health. Once debt becomes unmanageable and assets start depleting, lawsuits for debt collection start piling up and people become unable to afford basic necessities. For this reason, it is important to understand the right time to file for bakruptcy.

A recent report from Notre Dame Law Review says that waiting and suffering in debt has become a common scenario within America. It also shows that the number of people who waited for five years or more before filing bankruptcy has doubled compared to last year. Research shows that if you wait, your financial situation will get worse rather than improving.

So, when should you consider filing for bankruptcy? CEO of GreenPath, Kristen Holt, says that one should call the counseling agency as soon as stress starts building up. One can consider the following factors to determine the right time:

TechShop, a membership-based communal workspace for artists, designers, and tinkerers with locations across the United States and abroad, abruptly closed its doors in November of 2017. Along with this closure came an announcement that the company filed for Chapter 7 bankruptcy. All locations in the United States closed, while those outside the country remain in operation.

TechShop operated from 2006 to 2017. Recently, in an effort to remain financially solvent, it moved away from opening and operating its own makerspaces to focus on helping universities and nonprofits launch their own makerspaces. A makerspace is a large, open area outfitted with work benches, tools, and other equipment to design and build objects. For individuals who do not have the space or money to purchase and store this large equipment for themselves, makerspaces make it possible to access this type of equipment. They also offer safety courses and in some cases, educational seminars where members can learn about different equipment and techniques.

Chapter 7 Bankruptcy for Businesses

There is no limit to the number of times you can file for bankruptcy. When your personal debt amount reaches a level where it is impossible for you to pay it down yourself, Chapter 7 and Chapter 13 bankruptcy are there for you to use to have your debts discharged under court supervision. If you have completed a bankruptcy case before, you know that it can be a difficult process that requires you to cede a significant amount of control to the court. You are also aware of the repercussions that a completed bankruptcy case has for your credit. Even knowing this information, you might still be considering filing for bankruptcy a second time. If you are eligible to do so, consider making this move.

Determining When You Can File for a Second Bankruptcy

Your second bankruptcy cannot immediately follow your first. The chapter of your first and your proposed second bankruptcy determine when you can file your second case.

Chapter 7 bankruptcy is often called “liquidation bankruptcy” because it involves the liquidation of the filer's nonexempt assets to satisfy his or her debts. Certain classes of assets are exempt from liquidation, which means that the filer's bankruptcy attorney cannot sell them to recover liquid cash to satisfy the filer's debts. Other assets are nonexempt, which means that they can be liquidated in a Chapter 7 case.

In short, exempt assets are assets that filers need to continue living safe, productive lives. Certain assets, like the filer's primary home, are clearly exempt from liquidation. Others, like certain retirement accounts, are not as easy to discern. Below are a few ways to determine whether an asset is exempt from liquidation or not. If you are ever not sure about an asset's exemption status, ask your bankruptcy lawyer.

If you are struggling with an intense level of personal debt, consider filing for bankruptcy. Individuals in this situation can file for Chapter 13 or Chapter 7 bankruptcy, depending on the chapter for which they qualify. Often, it is easier to qualify for Chapter 13 bankruptcy, but this is not always the case.

Consider Chapter 7 Bankruptcy