Signs That It Is Time to File for Bankruptcy

Wednesday, June 27th, 2018, 10:55 pm

When you are in over your head with credit cards or medical bills are piling up, you may think going bankrupt is your only way out. However, bankruptcy is only meant to be a last-resort option. So when the medical bills, rent, and unpaid mortgage starts bringing auctioneers to your door, it may be time to consider this option. One sure way to know if it is time to file for bankruptcy is by looking out for the following signs.

You Cannot Pay Your Bills

An unexpected event such as illness, or loss of job can put you in a very tight spot financially. You may find yourself unable to pay your bills including rent. If you find yourself turning to credit cards just to cover everyday bills you may find yourself buried in debt. Unfortunately, even if you reach a point where you’re able to cover your basic living expenses without relying on the cards, keeping up with the minimum payments on your debts may prove to be too much of a struggle. During this time, consider filing for bankruptcy to give you some form of financial release.

You Are About To Lose Your Home

The housing market has seen a decline in the number of foreclosures, however, there are a number of people out there who are struggling to keep up with home payments. Luckily, if your financial situation has reached the point where foreclosure is a possibility, filing bankruptcy can help you get caught up on your payments and keep your home. If you file for bankruptcy, you will be able to keep all of your assets and create a plan for repaying delinquent debts. After a period of either three or five years (depending on your income) your case will be discharged.

Debt Collectors Are Pursuing You

After you default on all your loans, your creditors will come after you. Most of the time, they will threaten to take legal action if the debt is not paid by a certain date. In this situation, take the legal route that is claiming bankruptcy, to let your creditors know that you really cannot afford to pay it.

If you are having problems with your finances and need help, contact the Law Offices of Michael Kanzer and Associates today  and get all the help you could need. You can also sign up for our newsletter to help you get started.

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Category: Bankruptcy Law

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