A bankruptcy move is a very personal decision. Only you, and your partner if you are married, know the level of discomfort you are enduring with your financial situation. What might be perfectly fine for some people can feel crippling to others. While feelings of frustration and despair send many to the bankruptcy lawyer, others are being threatened with the loss of their possessions. Read on to find out about a few events that might make you realize that it's time to declare chapter 7 bankruptcy.
Rob Peter to Pay Paul
Many people find themselves living from paycheck to paycheck and not being able to put any aside for a rainy day. That, however, pales in comparison to the struggle some go through with paying bills. You may find yourself without enough money to buy food and making only partial payments on your rent or mortgage. Some also pay the credit card game where they take cash advances out to pay off other cards or use the available credit to keep the electricity on. The best way to find out what is going on is to add up your monthly debts and your income. Be accurate and use the figures from your most recent month to determine costs for food, gas, credit cards bills, and more. If you don't come close to making enough to pay your usual bills, you might need to take legal action before it's too late.
Repossessions, Foreclosures, and Evictions
When you fall behind on certain secured debts, losses can follow. The only way to stop repossession, foreclosure, and evictions is to file for bankruptcy. In most cases, the filing triggers an automatic stay which helps you hang on to your property for a limited time. This could be your opportunity to rearrange some bills and get caught up before you lose your property. For example, once you file, you don't have to pay any more credit card bills and that money can be put to better use.
See You in Court
If you are sued by a creditor before you file, you may be suffering from wage garnishments and liens on your property. A bankruptcy filing removes all but garnishments due to child support or taxes and automatically gives you access to your home, which you can perhaps sell, and your full salary.
Any one of the above issues can bring the potential for property losses and the impaired ability to get your finances straightened out on your own. Speak to a bankruptcy attorney to find out more. To learn more, contact an attorney like Charles J Schneider PC.Share