5 Signs it Is Time to File for Bankruptcy Protection
No one is eager to file for bankruptcy. Many people will do anything to delay the day of reckoning. Some will even sell their possessions, even their car, to put off a bankruptcy filing.
However, financial stress takes its toll on people’s lives, leaving many people with sleepless nights and mounting bills. Below, we identify 5 signs that now is the time to pick up the phone and call a South Florida bankruptcy attorney at Nowack & Olson.
You Don’t Have Money for Groceries
Are you putting daily essentials such as gas or groceries on a credit card and not able to fully pay it off at the end of the billing period? If so, then you are clearly living beyond your means. Chances are, too much of your income is going to debt repayment, so it is time to consider filing for bankruptcy.
You Use One Credit Card to Pay Another
Using debt to pay off other debt is a vicious circle that can only lead to financial collapse. If you are getting a cash advance to pay off your other debts, or if you take out a personal loan, then you are in financial trouble.
There is an important exception, however: You might be consolidating debt at a lower interest rate. For example, you might get a balance transfer for 0% for 18 months, which will save you money over the long term. It can also make a monthly payment more affordable. However, if you use a balance transfer to simply free up more money to spend, then you are not solving your financial problems.
Creditors Have Garnished Your Wages
Garnishment is a clear sign you should consider bankruptcy. Of course, you can’t wipe out all debts, such as alimony or child support. So if the garnishment is for either of those two expenses, then bankruptcy won’t help. But if another creditor has sued you on a debt and begun to garnish your wages, now is the time to consider clearing the debt via bankruptcy.
You Can’t Sleep at Night
Life is stressful enough without creditors or collection agents calling you or visiting your home. If you find yourself staying up all night worried about debt, then now is the time to seek relief. Filing for bankruptcy automatically stops creditors from contacting you thanks to the automatic stay. And wiping out qualifying debts will give you peace of mind.
You Face Home Foreclosure
Foreclosure occurs when borrowers cannot make their mortgage payment, and creditors have a right to foreclose. Filing for bankruptcy can stop a foreclosure action. You can also use a Chapter 13 to catch up on your past-due monthly payments. Ultimately, bankruptcy cannot wipe out your home loan, but it can provide a way to finally get caught up on your mortgage.
Want to Learn More? Contact Us Today
The Plantation bankruptcy attorneys at Nowack & Olson has helped tens of thousands of people seek bankruptcy protection, and we can spring into action to help you. All you have to do is call 888-813-4737 to schedule a free consultation.