Filing for bankruptcy is a complicated process and a decision that should not be taken lightly. But for some, it is the only solution that will get them out of debt and serious financial problems. So how do you know if bankruptcy is right for you? Here are five signs it’s time to consider filing for bankruptcy:
You are being sued by debt collectors. When you fail to make payments on a debt, that debt gets turned over to a collection agency. If the collection agency’s calls and letters go unanswered they may file a lawsuit against you. Fighting these lawsuits can be difficult and if you lose, you will likely end up paying more in attorneys’ fees and court costs. It is best to not let it get to this point. Filing for bankruptcy provides you legal protection against creditors and debt collectors. Once the automatic stay is issued, it bars any additional collection attempts, including lawsuits being filed against you.
Your credit cards are maxed out. This not only is affecting your credit score negatively, but you are likely trapped in a cycle of making only the minimum payment on these cards while the interest accrues to amounts you will never be able to pay off. Credit card debt is one of the easiest kinds of debt to discharge in bankruptcy.
Your wages are being garnished. If a creditor obtains a court order for a wage garnishment, your employer is required by law to abide by the order and withhold money from your check each pay period until the debt is paid off. If your wages are being garnished you can still be protected by the automatic stay, which will halt further wage garnishment.
You cannot afford your bills. If you were recently laid off from your job or had an unexpected medical expense, for many Americans it is just a matter of time before even a small amount of debt can spiral into something much greater. Chapter 7 bankruptcy is specifically designed for individuals and families whose income level is not sufficient to pay their debts.
You are in danger of losing your home. If your financial situation has reached the point where you are behind on mortgage payments and facing possible foreclosure, filing for bankruptcy can help you get caught up on those payments while staying in your home.
If you have any 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.