Determining whether to file for bankruptcy is one of the most difficult decisions many people make. Bankruptcy should be a last resort, as it will impact your credit for a number of years. However, it will help you get a fresh start financially.
So how do you know if bankruptcy is your best option? Following are some signs that it’s time to seriously consider bankruptcy.
You’re paying basic living expenses with credit cards
Many people find themselves mired in credit card debt. However, if you’re relying on these cards to pay everyday bills, there’s a serious problem. If you’re having difficulty making even the minimum payments on these cards each month, that’s even worse.
You’re in danger of foreclosure
If you get far enough behind on your mortgage payments, you may face foreclosure on your home. You may be able to stop foreclosure with a Chapter 13 bankruptcy. You may be able to stay a foreclosure with Chapter 7, which could let you arrange for a loan modification.
Debt collectors are suing you
No one likes getting calls day and night from collection agencies to which credit card companies and others have turned over debtors’ delinquent accounts. However, if these agencies can’t recover the debt through calls and letters, they may file lawsuits to force you to pay what you owe. A bankruptcy filing can prevent further lawsuits and let the court issue a stay against creditors.
A creditor is garnishing your wages
When creditors take legal action against people who owe them money, they may be able to withhold (garnish) a percentage of someone’s wages. They may also be able to freeze their bank accounts.
If you’re dealing with one or more of these obstacles, your debt has gotten out of control and is consuming your life. An experienced Long Island bankruptcy attorney can provide valuable guidance and help you take steps to extricate yourself from this situation and get a handle on your finances.