Say some big, expensive things have happened recently. Your car had a run of trouble and you racked up a lot of bills trying to fix it, and got behind on all of your other bills along the way. Maybe you purchased something big; or your lost your job; or you had a large medical expense; but any way you put it your financial state is pretty scary and you’re wondering if that time has come: what if it’s time to file for bankruptcy?
Bankruptcy is when you are unable to repay your debtors and becomes your legal state through the court system, meaning that you need look for a bankruptcy lawyer. There are several different ways to file bankruptcy depending on what sort of assets you have and what your employment state is, but it’s a very drastic measure to take with your personal finances and is not just a “wipe the slate clean card.” In addition to affecting your credit history and having some of your property liquidated, bankruptcy cases can be as expensive as $3,000.
In spite of the potential downsides of filing for bankruptcy and speaking to bankruptcy lawyers, filing Chapter 7 or Chapter 13 might be the best course of action for you. Only a small percentage of people who have declared bankruptcy file again after the 8 year waiting period, less than 10%. Here are some of the warning signs that you might need to start looking for bankruptcy lawyers.
- Your Finances Cause You Dread. Feeling scared or out of control when it comes to figuring out how much you owe and to whom is a sign you might be heading to bankruptcy. It shows that you don’t know how much you owe, and that fear compounds itself, making it harder and harder to deal with.
- Getting Calls from Bill Collectors. Do you feel like your bill collectors are hounding you and you don’t even want to pick up the phone from fear that it will be one of them? This ties in with the fear of figuring out the state of your finances as well, and if you’re getting several calls from collectors each week, it might be time to call a bankruptcy attorney.
- Using Your Credit Cards to Pay for Every Day Items. When your expenses get so dire that you resort to using credit just to buy milk, it might be time to look into personal bankruptcy. Luckily, you aren’t alone: many people come to be in the same position, as studies show that more than 50% of people filing for bankruptcy make $30,000 or less annually.
No matter what the state of your finances are or how scary the future may seem, there’s always a second chance, so consider seeking out the counsel of your local bankruptcy lawyers, and get back on track today.