4 Warning Signs It Might Be Time For You To Consider Filing For Bankruptcy
Often, filing for bankruptcy is the last thing people struggling with finances want to do. People avoid bankruptcy for various reasons. For instance, some people avoid bankruptcy because they associate it with failure, and others avoid it because they believe it will damage their credit forever. Indeed, bankruptcy has its downsides. For example, bankruptcy can stay on your credit report for up to ten years. Nonetheless, the reality is that bankruptcy has helped many debtors get financial relief over the years. For instance, in 2020 alone, 544,463 bankruptcies were filed.
If you are struggling financially, then perhaps you should consider bankruptcy. Chapter 7 or Chapter 13 bankruptcy can offer you the fresh start you need. Even though filing for bankruptcy is not the best solution for everyone, bankruptcy can lift the burden of debt from your shoulders.
So, how can you know when it is time for you to consider bankruptcy? Below are four signs it might be time to consider filing for bankruptcy.
Sign #1: You Rob one Bill To Pay Another
If you find yourself choosing not to pay one bill so you can pay another, it could be time for you to think about filing for bankruptcy. Also, if you find yourself failing to pay essential bills such as water bills just so you can survive, it may be time for you to consider bankruptcy. Generally, people find themselves choosing which basic bills to pay and which not to pay after spending most of their income on debt repayment.
Sign #2: Constant Creditor Harassment
If your creditors are always trying to contact you and demand payment, you are most likely ignoring them. However, ignoring your creditors is not a long-term strategy that can free you from the mounting pressure of the debts you owe them. Ignoring your creditors will not prevent them from contacting you. If you are struggling with creditor harassment, it might be time for you to consider filing for bankruptcy.
Sign #3: You’ve Already Been Sued
Often, most debtors seek help before it gets to a situation where they get sued by creditors. Nevertheless, it’s not too late for you if a creditor has already sued you. If you take prompt action, you can get the relief you need. In addition, lawsuits are often just the beginning of more aggressive campaigns by creditors to seize debtors’ assets. Therefore, if a creditor has already filed a lawsuit against you, reach out to a skilled attorney for help.
Sign #4: You Are Facing Foreclosure
If, for instance, you’ve not been making your mortgage payments and a foreclosure is imminent, it might be time for you to think about filing for bankruptcy. Chapter 7 or Chapter 13 bankruptcy can provide you with the opportunity to keep your home and figure out things. With Chapter 7 bankruptcy, you can have many of your debts eliminated, whereas, with Chapter 13 bankruptcy, you can have your debts re-arranged.
Contact a Southeast Iowa Bankruptcy Attorney Today
If you need help determining whether it’s time for you to file for bankruptcy, contact an experienced Southeast Iowa bankruptcy attorney at the Noyes Law Office today to schedule a consultation.