Is bankruptcy right for you?

It's important to determine if bankruptcy is the best option for your situation.

If you are struggling with debt and need a fresh financial start, you may have considered a bankruptcy filing. The decision to file for bankruptcy is a very personal one, and it shouldn't be taken lightly. That being said, there are some situations where a bankruptcy proceeding is the best way forward.

How do you know if bankruptcy is right for you? Here are some signs that you may need to strongly consider bankruptcy for debt relief.

You're facing foreclosure

If paying on your debt means skipping mortgage payments, you should seriously consider a Chapter 7 or Chapter 13 bankruptcy. Mortgage lenders will not hesitate to move forward with a foreclosure proceeding after just a few missed payments. This will put you at risk of losing your home. The debt discharge that comes along with a bankruptcy filing can free up much-needed funds so that you can make mortgage payments and keep your home.

You need to put a stop to debt collector harassment

Debt collectors are notorious for harassing and threatening methods. They may call you multiple times daily, both at home and at work. You may have dozens of voicemail messages and nasty letters. When you get to the point where you are afraid to answer the phone or check your mail, bankruptcy might be right for you. A bankruptcy filing puts in place something called an "automatic stay" that puts an immediate halt to debt collection efforts. This means freedom from harassment. You'll be able to answer the phone again and head to the mailbox without fear.

You're dealing with wage garnishment

Has a debt collector won a judgment against you? If so, your wages are likely being garnished. This means, of course, that your paycheck is smaller, which can lead to even more debt. You'll have less money to cover other debts and your monthly expenses. A bankruptcy filing can put an end to many debt-related garnishments. An important caveat: bankruptcy will not remove garnishments related to "domestic support obligations" like child support or alimony payments.

You can't cover monthly expenses

If your debt payments are eating into the money you need to cover monthly expenses (utilities, groceries, etc.), bankruptcy might be your best way forward. Even if you are able to cover these expenses with credit cards, you still might benefit from a bankruptcy filing. By discharging the rest of your debt, you'll be able to cover your monthly expenses once again without accruing even more credit card debt in the meantime.

These are only a few of the many reasons why you might want to consider a bankruptcy filing. Bankruptcy will also halt repossession and can help remove judgment liens against your property. It's important to work with an experienced bankruptcy attorney to determine if bankruptcy is right for you. If you're in the Orlando, Florida, area, contact the Law Offices of Paul L. Urich, P.A. Call the firm at 407-982-3763 or send them an email to schedule a free consultation.