Hello, this is an automated call from ___ collections to let you know you’re behind on your payments.
Does that sound shuddering-ly familiar? If it does and collectors are hounding you, then it may be time to file for bankruptcy. Although bankruptcy gets a bad name, it is probably the single most significantly positive legal action a borrower can take to positively impact their lives and get a fresh start.
There is a perception of “negative consequences” to bankruptcy, but largely these are the result of creditor propaganda, not actual fact. The truth is, if you are considering filing bankruptcy, your credit is likely already substantially damaged and you are not about to qualify for a huge new line of credit due to high amounts of existing debt. Translated: you have nothing to lose!
Should You File for Bankruptcy?
Filing for bankruptcy can be a difficult decision for some, for others it is purely a financial decision based in logic and fact. Typically even the “worst case” scenario in bankruptcy involves paying creditors back at a substantially reduced amount to what was originally owed.
Learn if it’s right for you below.
1. You Have No Savings
The average person is one emergency away from financial distress and the need for assistance, yet you’re too in debt to qualify for anything. If you’re just making minimum payments to stay current and “hang on” – it’s probably time to call a bankruptcy lawyer.
In fact, those with substantial debt need a savings account more than anyone! You won’t be able to get more loans or credit than you already have (if it’s maxed out) – so your savings is the only place to go.
2. You’re Doing “Creative Financing”
If you’re balancing when you can pay which bill late so that you can pay another bill with minimum fees, that’s not a good sign. Not only is it not sustainable, but it’s almost a full-time job.
The bills are going to time out on letting you pay late eventually and you’ll be back where you started. Get rid of the loans or at least have them consolidated by declaring bankruptcy.
Ask your lawyer about the different kinds of bankruptcy.
3. You’re in Lawsuits About Your Debt
Did a creditor sue you? If you’re being sued by a big financial industry or bureau, it’s unlikely that you’ll win on your own. You signed a contract that you’d pay the money back when you got the card or loan – so you really don’t have a strong case unless you’ve diligently set up defenses ahead of time.
Those lawsuits can drain you of more money you don’t have – and you’ll need to get legal representation. It’ll cost much more than a bankruptcy lawyer in the long run.
4. Your Home is on The Line
Are you worried that you’ll come home to an eviction and foreclosure notice? That’s not a situation anyone ever wants to find themselves in.
If you declare bankruptcy in time and file things correctly with the help of a lawyer, you have a better chance of keeping your home.
How to File for Bankruptcy:
Do any of these situations sound like you? Or can you just not deal with the losing-sleep and hair conditions of living in massive amounts of debt?
If you file for bankruptcy, we can help. Our lawyers are kind, understanding, and on your side. We’ll get through this together!