Bankruptcy is a hard decision for most Americans, and this means it’s often put off until the last possible moment. But has that moment already past? If you’re being sued by creditors, have seen your wages garnished, or have already seen an asset repossessed, is it too late to seek help through bankruptcy? The answer is often no, and here’s what you need to know about why.
1. If You’re Being Sued
When a debtor can’t make the payments to a creditor, that creditor has the right to eventually ask the court to order the debtor to pay. If they still can’t or won’t, the order to pay may also be followed by an order to seize some sort of assets (such as cash, wages, or a vehicle) to pay the debt. The good news is that a bankruptcy filing includes an automatic stay that stops all collections processes — including a lawsuit.