If you are experiencing extreme financial hardship, filing for bankruptcy can be one of the best decisions you make. Below are seven signs you should move forward with filing for bankruptcy.
- Putting everyday necessities on credit cards. If you are racking up credit cards with everyday necessities, like groceries and gas, it may be time to move forward with your bankruptcy filing. Oftentimes we see clients spending nearly their entire paycheck on debt repayment. This becomes a vicious cycle. You continue to accrue interest and finance charges on these cards, and eventually you will owe more than you can ever afford to pay off.
- Paying credit cards with credit cards. Another sign bankruptcy protection might be the answer for you is if you are making one credit card payment with another credit card. If you are regularly taking out cash advances to pay another cash advance loan, you are only postponing your debt repayment, not lessening it.
- Interest rates rising. If your lenders are increasing your interest rates due to missed payments, you may want to consider filing for bankruptcy. If you start missing payments, lenders, particularly credit card companies will raise your interest rate by as much as 30%! If your interest rate is that high, you are only paying interest each month and not the balance.
- Working multiple jobs. If you are working two or three jobs and still struggling financially, bankruptcy may be your best option. Oftentimes, an extra income is enough to reduce your debt. If you are still lagging behind on your bills while working multiple jobs, you may need to consider more drastic options.
- Being sued / facing wage garnishment. If your lenders are pursuing a court order to garnish your wages, you should consider filing for bankruptcy protection. If the lenders are successful, they will make an arrangement with your bank or your employer to take money directly from your paycheck. If this happens, it can lead to more financial problems.
- Debt affecting your work and personal life. If your financial stress is affecting your work and personal life, you may want to consider filing for bankruptcy. Your financial problems will become much worse if your performance suffers and you are fired. Filing for bankruptcy will give you a fresh start with your finances and eliminate the financial stress and pressure you have been under.
- Dipping into retirement accounts. If you are considering taking money from your retirement account to pay your current debt, bankruptcy is a better option. Keep in mind, most retirement accounts are protected in bankruptcy, therefore you should avoid pulling out any money before you file.
If you are in a financial crisis and are considering filing 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, P.A. 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 website at www.miamibankruptcy.com.