Filing for bankruptcy is a huge decision, but for many, it is the only way to pay off their creditors. The process can be intimidating and your decision to file can have a lasting impact on your credit, but luckily, it offers the opportunity to start over with a clean slate. As bankruptcy attorneys, Groce & DeArmon, P.C. has helped hundreds of people file bankruptcy and prepare their case for court. Here, we discuss a few signs that it is time to declare bankruptcy.
Lawsuits with Debt Collectors
If you fail to make payments on your debt, it may be turned over to a collection agency. Receiving a phone call from a collection agency is one of the first signs that you should declare bankruptcy. Failing to pay the collection agency can result in a lawsuit, and if you lose your case, you may end up owing even more in legal fees. If you do not have a plan to pay back the collection agency, it may be time to contact a bankruptcy attorney.
In some jurisdictions, debt collectors can garnish your wages. This means that a portion of your paycheck is given to the debt collector until the debt is paid off in full. Generally, your employer is legally obligated to comply. If your wages are being garnished, you can protect yourself with an automatic stay by filing bankruptcy. Although you will have to go through the process of bankruptcy, you will receive some financial relief if your wages are being withheld to pay off the debt.
Struggling to Pay Basic Bills
Most people decide to contact a bankruptcy attorney when they can no longer pay their most basic bills, such as their utilities. Some people will temporarily cover their living expenses with their credit cards, but soon, it can be difficult to even make the minimum payments. Generally, people who find themselves in this situation will file for Chapter 7 Bankruptcy. In a Chapter 7 Bankruptcy case, a bankruptcy trustee will liquidate any of your non-exempt assets to pay off your debts.
Losing your home can be a scary and heartbreaking situation. If you are facing foreclosure, you may be able to file bankruptcy, catch up on your payments, and keep your home. People in this situation usually file for Chapter 13 Bankruptcy which allows them to create a payment plan for paying off their debts. To learn more about Chapter 13 Bankruptcy, contact a bankruptcy attorney.
Contact a Bankruptcy Attorney
If you think it’s time for you to file bankruptcy, set up a consultation at Groce & DeArmon, P.C.. Filing for bankruptcy can be a time-consuming and difficult process, but working with bankruptcy attorney ensures you get the fresh start you deserve. To set up a consultation, give us a call today at 417-862-3706.