Making the decision to file for bankruptcy is never an easy one. For some, it can be difficult to get past some of the myths associated with filing for bankruptcy. Sometimes by waiting, an individual facing a lot of debt can find himself or herself in an even worse situation. So, when is the right time to file for bankruptcy?
A recent study from the Consumer Bankruptcy Project and an article from the Notre Dame Law Review highlighted that the longer people wait to file bankruptcy, the more they end up struggling- not only financially, but in their personal lives as well.
The following factors are indicators that you should consider filing for bankruptcy, or at least sit down with an experienced bankruptcy attorney to discuss your options in more detail.
- If your debt amount is more than 40 percent of your income. The higher the debt-to-income ratio a person has, the less likely it is he or she will earn enough money to ever pay back the debt;
- If you are using debt, such as credit cards or unsecured personal loans, to pay for other debts;
- If your debts include items that can be liquidated in bankruptcy, such as medical debt, credit cards or personal loans;
- You are using payday loans to help cover necessities before your next paycheck. This is oftentimes a sign your expenses are exceeding your income;
- If you are forgoing necessities such as healthcare, prescriptions, or food;
- If the collection calls have reached a breaking point;
- If you have been threatened with a lawsuit, are being sued by a creditor or your wages are being garnished.
If someone is on the fence as to whether to file for bankruptcy, he or she should schedule a free consultation with a bankruptcy attorney.
If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.