8 Signs You Should Think About Filing For Bankruptcy
We all run into financial trouble from time to time. Expenses go up unexpectedly, or we change jobs or experience some other change in income. Sometimes, we’re able to weather the storm (usually with the help of savings), but sometimes, we aren’t. Many people end up using credit cards or taking on other debt to deal with their financial crisis, or they face a crisis caused by overspending on the credit cards themselves.
Filing for bankruptcy can provide some needed debt relief, but many people tend to delay it in an attempt to get a handle on their debt themselves. Here are some warning signs that your debt might be getting out of control and you need to think about seeking protection under bankruptcy:
You Rely on Credit Cards
Many people use a credit card or two every now and then. But if you are at the point where you are using credit cards to pay for the basics because you can’t afford to pay with cash, you might be in trouble. Likewise, you might be in over your head if you are constantly using your credit cards and your balances just keep growing.
A Chapter 7 bankruptcy filing can discharge all your credit card debt if you qualify. Not only will it get rid of that crippling debt, but it will also free up the cash you need to pay other debts, such as your car or home loans.
You Have Delayed the Necessities
Has it been a couple of years since you went to the dentist? Or are you driving around with a bumper hanging off your car? If you are putting off taking care of the necessities because you don’t have the free cash, chances are that you have become mired in debt. Filing for bankruptcy may be able to help you get rid of debt or get it under control so that you are able to afford what you need again.
You are Considering Loans
Have you gotten to the point where you are thinking about taking out a payday loan or a title loan just to get through the month? That’s usually a point of desperation for most people because their credit scores are so bad that they can’t get more reasonable loans.
If you aren’t able to get by on your income alone, bankruptcy can help you eliminate some or all of your debt so that you can get your finances under control. Taking out one of these high-interest loans would only add to your debt crisis.
Your Phone is Ringing Off the Hook
Once you miss a payment, even by a couple of days, your creditor is going to start calling you to ask that you make arrangements. And they will keep calling every day until you pay or you make a plan to pay. The more payments you miss with the more creditors, the more your phone is going to ring. You may start to dread picking up the phone. If you are at that point, it’s likely time to talk to a Gilbert bankruptcy attorney.
You Have Received a Summons from a Creditor
Your creditors won’t keep calling forever. Eventually, they will move to take legal action against you. If you have received a summons from a creditor, it means that your creditor has filed action.
You can talk to an attorney to defend the suit, but chances are not good that you will prevail if you actually owe the money. You will have a better outcome if you talk to a bankruptcy attorney in Gilbert. Filing for bankruptcy will trigger an automatic stay, which will put a stop to all legal action until your bankruptcy is discharged (which will also likely result in the debt in question being discharged).
Your Wages or Accounts are being Garnished
If your creditor wins a judgement against you, your wages may be garnished or your bank accounts seized. The best thing to do is take action before this starts. However, at any point, you can still file for bankruptcy, and the automatic stay will still put an end to the garnishment. If the debt related to the garnishment is discharged, the garnishment will end for good.
You Have a Deficiency Balance
If your home is foreclosed on or your vehicle is repossessed, that may not be the end of your trouble. The sale of the home or car will be put toward what you owe. However, if the sale did not bring in enough, you may still owe your creditors.
If you didn’t have enough to save your home or car from being taken, chances are not good that you now have enough to pay this deficiency balance. Call a Gilbert bankruptcy attorney to explore your options for bankruptcy protection.
You Have Insurmountable Medical Bills
An illness or injury can quickly lead to excessive medical bills, even if you had insurance. Fortunately, medical bills are usually quite easy to discharge in bankruptcy. Rather than succumbing to financial turmoil after your medical ordeal, you can have these bills discharged in bankruptcy and move forward with physical and financial health.
If you are experiencing any of these warning signs, or are struggling in some other way with debts, it’s time to call Gilbert Bankruptcy Lawyers. Our bankruptcy attorneys will help you understand how Chapter 7 bankruptcy or Chapter 13 bankruptcy could give you needed debt relief and a fresh financial start. We’ll analyze your personal finances and help you understand your best options for maximizing debt relief and protecting any assets you may have. Call us in Gilbert today to schedule a free consultation with a bankruptcy attorney and get started.