Facing large amounts of financial debt can lead to a constant feeling of stress, worry, and anxiety about the future. If your debt is starting to feel crushing and you’re not sure what your options are, filing for bankruptcy may be something worth considering. Of course, bankruptcy has a number of consequences that should be fully considered–and discussed with a lawyer–too, such as a hit to your credit score. That being said, when you’ve exhausted all other strategies, filing for bankruptcy may be the best one. Here are four signs it’s time to start thinking seriously about filing for bankruptcy–
- You Can’t Get Away from Debt Collectors’ Calls
When a debt goes unpaid, ranging from a mortgage to a medical debt to a credit card and more, debt collectors can become aggressive. Indeed, anyone who has ever been late on a payment can likely attest to the barrage of phone calls and emails that will inevitably follow. If you are struggling to pay your debt and cannot get away from debt collectors’ calls to the point where you feel swarmed and suffocated, bankruptcy may be a viable option.
- You’ve Had a Lawsuit Filed Against You
If you go too long without paying your debt, the debt will probably be turned over to a debt collection agency, which will make its best effort to collect on that debt. If efforts are fruitless though and the debt continues to go unpaid, the collection agency may resort to actually filing a lawsuit against you to force you to make a payment. If you’ve had a lawsuit filed against you, you need to act quickly. Filing for bankruptcy will trigger the automatic stay, putting a halt on debt collection efforts and giving you a moment to breathe and proceed with the bankruptcy procedure. Once a creditor obtains a judgment against you, it can move forward to attempt to attach your wages from your employer, attach any money you may have in a bank account and pursue court collection processes which could result in your being involved in a court process for years.
- Your Home Might Be Foreclosed Upon
Losing a home can be a terrible thing, and is likely something you’re worried about if you’re buried under mountains of debt. If you have received multiple notices from your mortgage lender informing you that you’re behind in payments, foreclosure may be next. If you receive a notice of foreclosure, act immediately.
- You’ve Met with a Professional to Discuss Your Options
Before you file for bankruptcy, you should consider other options, such as debt restructuring or consolidation or debt negotiation. It’s also wise to meet with a professional who can help you to understand your debt and your various options. Be wary that there are a number of debt consolidation companies that may not handle all of your debt. If you have multiple creditors, the company may arrange for payment plans for a portion of your creditors while leaving you in default of other creditors who may move forward with collection agencies, attorneys and lawsuits. This does not solve your financial problem.
If you’ve met with a professional to discuss the various financial strategies that are available to you and debt is still pressing, filing for bankruptcy could help.
Meet with Our Bankruptcy Attorney Today
At the office of Deborah Gold-Alexander Attorney at Law, our bankruptcy lawyer can provide you with the representation and guidance you need and deserve as you navigate the bankruptcy process. While the bankruptcy process may have a negative connotation in your mind, it actually can be an Exit Strategy to get you out of very poor financial situation. In a bankruptcy proceeding, you can discharge most of your debt and start over. You will receive applications for new credit cards and while you may not want to ever have credit card debt, you may wish to obtain at least one or two credit cards and use them and pay them each month. This will be a way for you to re-establish your credit. Additionally, even after a bankruptcy discharge, should you qualify and usually after a particular waiting period of perhaps two years or more or less depending upon a lender, you may be able to purchase a home and obtain a mortgage.
Deborah Gold-Alexander Attorney at Law has over 30 years’ experience and is ready to meet with you. She has witnessed previous clients move forward with purchasing homes and obtaining mortgages after bankruptcy. She has also witnessed previous clients re-establish their credit and increase their credit scores. Call or send a message today to get started.