The decision to file for bankruptcy is not an easy one to make. For some, it may feel like a last resort, while others may feel relieved knowing that they can finally get out from under their debt. But how do you know when it’s time to file for bankruptcy? In this blog post, we’ll review five signs that bankruptcy should be your next step.
1. You’re drowning in debt.
One of the most obvious signs that bankruptcy could be the best option for you is if you’re drowning in debt. When your debt reaches a point where you can’t make the minimum payments, and it’s affecting your ability to pay for essentials like housing and food, it’s time to take action. Bankruptcy can relieve your debt, stop collection calls, and give you a chance to start over.
2. Your income can’t keep up with your expenses.
If you’re struggling to make ends meet and find yourself relying on credit cards to pay for daily expenses, it’s time to take a hard look at your finances. Bankruptcy can provide you with a fresh start, but it’s essential to ensure you can keep up with your expenses moving forward. If your income can’t keep up with your current expenses, it’s time to consider bankruptcy.
3. You’re facing the threat of foreclosure or repossession
If you’re behind on your mortgage or car payments and facing the threat of foreclosure or repossession, bankruptcy can help. Filing for bankruptcy can stop foreclosures, giving you time to catch up on missed payments. It can also stop repossession, allowing you to keep possession of your car while you work to catch up on payments.
4. Your credit score has taken a hit.
If you’re struggling to keep up with your debt payments, your credit score is likely to take a hit. When you file for bankruptcy, it will appear on your credit report for up to ten years, but it doesn’t mean your credit score will be permanently damaged. In fact, some people see an increase in their credit score shortly after filing for bankruptcy as their debt-to-income ratio improves.
5. Creditors are suing you.
If creditors are suing you and don’t have the means to pay the debt, bankruptcy can help. Filing for bankruptcy can put a stop to collections efforts, including lawsuits. Bankruptcy can provide you with protection from creditors and give you time to get your finances in order.
If any of these signs speak to you, it may be time to consider bankruptcy. Remember, bankruptcy is not the end of the road – it can give you a fresh start and a chance to regain control of your finances. Speaking with a bankruptcy attorney to discuss your options and make an informed decision is essential. With the right guidance, you can find some relief from your debt and start building a brighter financial future.
Lewis and Jurnovoy is a local law office serving the Florida Panhandle. We specialize in bankruptcy law, including Chapter 7 and Chapter 13 bankruptcy. We will work to achieve the best financial remedy for your outstanding debts.
Lewis & Jurnovoy PCB
2714 West 15th St
Panama City, FL 32401
(850) 913-9110
https://www.LewisandJurnovoy.com
Lewis & Jurnovoy, P.A. - Panama City 