Signs You Should File for Bankruptcy

December 28, 2018

Bankruptcy Lawyer Clearwater, FL

The idea of filing for bankruptcy is scary for many people to think about. They may fear that their credit will be ruined forever and that they’ll lose their homes. However, there are some situations when bankruptcy may be the best options. Here are some signs you may need to file for bankruptcy.

You’re Struggling to Pay Your Bills

There are few things as stressful as not being able to pay your bills. If you have recently lost your job or had unexpected medical expenses, you may be finding it more difficult to pay necessary expenses, such as your mortgage, utilities and groceries. If you have resorted to paying your bills with credit cards, you may be in serious financial trouble. Filing for bankruptcy can help you get a financial fresh start and rest easier at night.

You Risk Losing Your Home

If you’ve been struggling financially, you may be having difficulty keeping up with your mortgage payments. If you miss more than a couple of payments, the bank may take away your home. In this case, filing for bankruptcy may be your best option. Unlike popular belief, filing bankruptcy doesn’t automatically mean you’ll lose your house. If you file for Chapter 13, you can actually hold onto all your assets and pay your debts on a repayment schedule.

Debt Collectors Are Suing You

If you haven’t made payments on your credit cards or loans for months, there’s a good probability that your creditors will turn your debt over to a collection agency. These debt collectors may call you several times a day and send you notices in the mail, demanding that you pay up. If you don’t respond to them, they may file a lawsuit against you. If you file for bankruptcy, the court will issue an automatic stay against your creditors. This means they will no longer be able to take legal action against you.

The Majority of Your Debts Are Unsecured

Most unsecured debts are discharged completely in Chapter 7 bankruptcy and drastically reduced in Chapter 13 bankruptcy. If you have credit card or medical debt that you are struggling to pay off, bankruptcy may be a viable solution.

You’ve Used Up All Your Savings

Having absolutely no savings is financially risky. If an unexpected illness or other emergency comes up, you will have difficulty paying for it. If you’ve used up all your savings to pay bills and are unable to save more, filing for bankruptcy may be your best option. Filing bankruptcy can get rid of most of your unsecured debt, freeing up more of your income. You can use some of the extra income to build a savings account again.

If you are considering filing for bankruptcy, you should schedule a consultation with an experienced bankruptcy lawyer Clearwater, FL relies on at The Law Office of Michael A. Ziegler Law, P.L. He or she can review your case and determine if bankruptcy is your best option. Many bankruptcy attorneys offer free initial consultations, so there is no risk to speaking to one.

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About the Author

Ziegler Diamond Law: Debt Fighters, provides effective legal services to consumers in Clearwater, Florida, and throughout the Tampa Bay area who are facing home foreclosure, unmanageable debts, debt collector harassment, or other debt-related problems.