Signs You May Need to File Bankruptcy

24 March 2021
 Categories: Law, Blog

Filing bankruptcy should be taken seriously and you should always have this financial situation handled by a bankruptcy lawyer or a bankruptcy attorney. While not everyone has to file bankruptcy, you may face a time where this is a reality. Less than one percent of people ever file bankruptcy, so it's usually a last-resort decision to make about finances.

When you're facing financial hardship, sometimes bankruptcy is your best option. Here are signs you need to file for bankruptcy. Be sure to speak with a bankruptcy lawyer before beginning any process.

1. You cannot make any basic ends meet

When you cannot make basic ends meet because you have many bills to pay and are behind on medical bills, credit cards, and other issues, then bankruptcy may not be far behind. Bankruptcy is a way you can eliminate debt and start fresh, but it also shows up on your credit history and makes you start over with credit. However, if you cannot make your ends meet because sudden larger costs have come up or your bills are exceeding your day-to-day living, then bankruptcy may be your only option.

2. You are about to lose your car, house, and other major purchases

Bankruptcy can be the best option for you if you are about to lose your home, your car, and other things due to major expenses. While you won't be able to recover these things lost that you have not been able to pay for when you file bankruptcy, a bankruptcy lawyer will be able to halt the collections, late fees, threats to garnish wages from your job, and other legal measures creditors and mortgage companies can take. This will make your situation much easier to address.

If you are about to lose everything, filing for bankruptcy (rather than trying to pay for these things or recover your losses on your own) can be best. You can get out of a pricey mortgage, car payment, and other debts when you file; your bankruptcy lawyer will show you the many options you have to file accordingly.

Not everything can be eliminated when you file for bankruptcy. Child support and government-issued student loans are not included in a bankruptcy filing in most cases, but other debts are. You will be able to recover your credit with time once you file, and you can someday get a home, vehicle, and credit card in the future. Call a bankruptcy lawyer to make an appointment if you are considering your options.