How to you know when you should file for bankruptcy?

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How to you know when you should file for bankruptcy?

In 2006 I had a foreclosure and became homeless. I also have 2 judgements open – one in small claims, one in civil. I have been under the radar all this time but will be getting a good job. Should I file bankruptcy or is there statute of limitations that would enable me to wait it out? I am afraid of wage garnishment and am trying to get my life up and going again.

Asked on June 2, 2011 under Bankruptcy Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

There are statutes of limitations that apply to judgment debts. However, you are not likely to be able to "wait it out"--the statute of limitations on judgments in Florida is twenty (20) years, so even if the judgements date to 2006, they can be enforced until 2026.

You should speak with a bankruptcy attorney to evaluate whether bankruptcy is right for you--and also which kind of bankruptcy, chapter 7 or chapter 13. Note that the key answer is usually how much you owe--since bankruptcy has a very drastic effect on credit, for many years, if it's an amount you think you *could* pay, even if you don't want to, you're often better off without filing bankruptcy. Good luck.


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