Advocating For Consumers In Bankruptcy Filings For More Than 25 Years

Recognizing the right time to file

by | Apr 16, 2021 | Bankruptcy

While bankruptcy is commonly associated with individuals living paycheck to paycheck, this is an unfair generalization. Money woes can hit anyone in any profession at any time. In fact, many of those in financial peril are there due to a sudden unforeseen emergency rather than poor choices.

The Bankruptcy Code exists to allow individuals to move toward a more secure financial future. Chapter 7 focuses mainly on the elimination of unsecured debt and Chapter 13 allows people to reorganize and repay creditors to remove debt and protect assets at the same time. While individuals will likely battle for months or years to solidify their finances, there are certain tell-tale signs that bankruptcy is the right option, including:

  • Missing debt payments: It is not uncommon for individuals to be late or miss the occasional payment. When missing payments or intentionally skipping them becomes the norm rather than the exception, you might be facing serious financial trouble.
  • Debt collector communication: As your debt begins to grow out of control, creditors will start to enlist the aid of debt collectors. These agencies will communicate with you through phone calls, letters and emails. They must follow numerous regulations to remain in compliance, but the communication can quickly start to add additional stress to your already stressful life.
  • Maxing out credit cards: It is not uncommon for individuals to rotate their debt or automatic payments across several credit cards. When those various cards have all reached their spending limit, individuals have lost any type of financial flexibility they might have cultivated.
  • Overwhelming debt from personal disaster: A personal financial disaster can lead to peril. Many Americans simply do not have the access to ready savings to cover several thousand dollars. Home repair or a medical emergency can represent a serious financial disaster that could quickly grow out of control.

Since every financial situation is different, it is wise to discuss your needs with a skilled legal professional. Seeking an attorney’s guidance can help you develop a plan that is uniquely tailored to your needs.

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