The biggest question for anyone who has debt piling up, is weighing the proper time for filing for bankruptcy actually is.
All too often people listen to the financial world who insist that bankruptcy should be nothing less than the last possible resort.
As a result, many people put forth the effort to do anything and everything possible in order to prevent having to declare bankruptcy; they end up getting rid of assets that they do not have to because they would be protected under the bankruptcy.
You have to remember that while bankruptcy should be a last resort, it is important to keep in mind that is not the worst possible scenario should you choose to file.
Yes, filing for Chapter 7 will scar your reputation and credit score for quite some time, but it does allow you the option to get more focused on your financial responsibilities.
So before you go and choose to file for Chapter 7, take the time to get properly educated to determine what sort of things would be protected in the event that you have to file.
These are the last things that you could possibly want to liquidate which may include things like your home or even in your retirement fund because in the event that you are still unable to completely pay off your debts, you may still have to file bankruptcy and it would be nice still have your retirement fund and or your home.
It is not a decision to be taken lightly, so you need to make sure that your properly educated with the process and ensure that you take in all possible means of rectifying your debt issues before hand without the need of liquidating possible assets that would otherwise be protect it in the event that you have to file anyway.