Signs You Should File for Bankruptcy
Filing for bankruptcy can often be difficult if you are planning on doing it for the first time. Many people even fear the word bankruptcy thinking that their entire credit history will be doomed forever and that they may face difficult situations as a result of filing. Here are some of the top signs it could be time for you to file for bankruptcy as a slight warning on your credit history could be far better than the eventual debts you may face. Here are the top signs you should file for bankruptcy:
It’s Difficult to Pay Your Bills
If you’re finding it quite difficult for you to pay for the necessities in life, it could be time for you to consider filing for bankruptcy before you find yourself in serious financial trouble or facing difficulty with the utility company. Opting for a new financial start could make paying your rent and basic bills much easier.
You May Lose Your Home
If you are facing foreclosure and finding it very difficult to pay mortgage payments, filing for bankruptcy could be a wise choice. Chapter 13 could allow you to hold onto your assets as you continue to pay your debts.
A Debt Collector is Taking You to Court
If it’s been some time since you’ve made payments on your loans, you could be facing calls or even a suit with debt collectors. If you’re unable to pay up or respond to them it’s possible that they could file a lawsuit. When you file for bankruptcy automatic stay gets imposed against these creditors so no future legal action can take place against you.
Your Debts are Unsecured
If the majority of your debts are unsecured you could dramatically reduce your debts in Chapter 13 bankruptcy or discharge your debts with Chapter 7 bankruptcy.
You are Out of Savings
Going through life without any type of emergency fund can be a huge risk. If you’ve drained your savings account, you may find yourself in a difficult situation if an unexpected illness comes up or other future difficulty. Having more of your income freed up to help you to save your emergency fund once again.
If you are interested in starting the process of bankruptcy contact our bankruptcy attorneys today.