Filing bankruptcy is not an easy decision. Bankruptcy seems like an easy out when you’re overwhelmed with a variety of debts, but even the best attorneys will tell you it’s important to really consider the long-term effects.
However, many individuals who have gone through the process have come out the other end much more financially stable. If you’re still unsure, here’s four signs that it’s time to file bankruptcy:
Being Sued by Creditors
When you don’t pay your bills for a long time, the creditor eventually turns the debt over to a collections agency. You can be sued for ignoring calls from collections. It is difficult to fight a lawsuit against a creditor, and the possibility of losing is high. Filing for bankruptcy will protect you from your creditors. They will no longer be able to contact you after you file bankruptcy.
Wages Are Being Garnished
A debt collector may take drastic steps in order to get the money that they are owed. They are legally allowed to garnish your wages and freeze your bank account. If you file bankruptcy, it will stop the wage garnishment. However, it is important to note that there are some restrictions put on this. For example, you can still get your wages garnished if you owe child support or alimony.
Unable to Pay for Bills and Living Expenses
An unexpected illness or losing your job can ruin you financially if you are not prepared for it. If you have to use your credit card for every purchase, then it may be best for you to file bankruptcy. Even if you can pay your monthly bills, it can still be difficult for you to pay your credit card bills.
Poor spending habits are typically not a good reason to file bankruptcy. However, if your income has taken a significant dip, then you will need to file bankruptcy. Chapter 7 bankruptcy is specifically for people whose income is not enough to pay their bills.
Losing Your Home
If you are facing foreclosure, then it is time to file bankruptcy. You can avoid foreclosure by filing Chapter 13. It allows you to restructure your debts so that you can pay them off over the course of three to five years. You can save your home as long as you make the required payments.
Bankruptcy can have many benefits if you qualify. If you’re still not sure, contact a local bankruptcy law firm and discuss your situation with a professional. The Louisiana bankruptcy lawyers at E. Orum Young Law Offices can analyze your finances and let you know which bankruptcy is most appropriate for you. Bankruptcy could be just what you need to start living better financially. Contact us today for a free case evaluation. Our Trial Guarantee ensures that we will take your case to trial per your request.
