People who are experiencing grave financial distress often turn to an attorney to help them decide if it really is time to file for bankruptcy. Filing for bankruptcy can be a tough decision, but it can also be a great resource for people who have tried for years to overcome debts but don’t make enough per month to slowly chop away at their outstanding debts. It is important to understand both the potential pros and cons when declaring bankruptcy.
Here are a few signs that it may be time to seriously consider filing for bankruptcy:
You are Overwhelmed By Debts
Every person and his or her financial status is different. Each individual is unique in their earnings, debts, expenses, and assets. An attorney can evaluate your current financial situation and help you decide if taking the steps towards bankruptcy can benefit you right now in addition to your financial future. Some questions a member of our legal team may ask during a consultation can include:
- Do you have trouble paying minimum payments for credit cards each month?
- Does the total of your debts vastly exceed what you earn per year?
- Have you maxed out or exceed past your limits on credit cards?
- How much property do you own, include exempt and non-exempt?
- Are you vulnerable to foreclosure on your home or other repossession of property?
- Are creditors constantly harassing you for payment?
- Have you been sued as a way for creditors to collect on debts?
It’s More Than Adjusting Spending Habits
For some people, bankruptcy isn’t needed. Instead, what could be an option is simply re-evaluating your spending habits and perhaps receiving education on how to balance your bills and earnings. By providing documentation regarding your finances, an attorney can run some numbers to see if there are debts you can slowly pay off with a little adjustment of your spending.
You are Being Sued By Creditors
If you fall too far behind on credit cards and other loans, creditors can sue you as means to collect on debts. If you don’t fight the lawsuit, chances are the creditor will obtain a default judgement in their favor. Based on your income level and how many assets you have, the court may approve to have your wages garnished or enforce liens against property. If you are in distress due to being sued by your creditors, filing for bankruptcy can put an “automatic stay” on collection actions. And, if debts are discharged through a bankruptcy chapter, then the lawsuits will be dropped.
Bankruptcy may not be the best choice for every person, but it can be what saves a number of people from enduring financial turmoil for most of their lives. Lawyers have your best interests at heart, so you can rely on their legal services. Please contact a law firm today to book your consultation with a bankruptcy lawyer in Melbourne, FL.
Thanks to the Law Offices of Arcadier, Biggie & Wood for their insight into bankruptcy law and signs it may be time to file for bankruptcy.