Q: When should an individual file for bankruptcy?
I have unpaid debts and owe money to my former landlord from my business which lost a lot of money during COVID and never recovered.
A: Filing for bankruptcy is a significant decision that depends on various factors. If your debts are overwhelming and you can't foresee a way to pay them off, bankruptcy might be a viable option. It can offer relief from debt collectors and provide a fresh start. However, it's important to consider the long-term implications, such as the impact on your credit score and the potential limitations on future borrowing. Bankruptcy can discharge certain debts, but not all types, and it may involve liquidating assets. Consulting with a bankruptcy attorney can help you understand the specific laws and procedures in your state. They can guide you through the process and help assess if this is the right course for you given your unique financial situation. Remember, every case is different, and a professional evaluation of your circumstances is crucial.
Martha Warriner Jarrett and Timothy Denison agree with this answer
A: In your specific situation, where you have unpaid debts and owe money to your former landlord from your business that suffered losses due to COVID-19, bankruptcy could be a viable option. Bankruptcy can help you eliminate or restructure your debts, including those owed to your former landlord. This could provide you with the financial breathing room you need to get back on your feet.
Timothy Denison agrees with this answer
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