Five Signs Bankruptcy Should Be the Next Step

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

Are You Allowed to File for Bankruptcy More Than Once?

Making the decision to file for bankruptcy is never an easy one. Although it can be a beneficial solution for getting out of debt, it may not be suitable for everyone. If you’re considering filing, being aware of whether or not you are able to declare bankruptcy more than once is essential knowledge. Martin Lewis and Steven Jurnovoy, Panama City’s leading bankruptcy experts, are here to break down the complex world of bankruptcy laws and regulations as it relates to your specific situation. 

It is essential to be knowledgeable of the two types of bankruptcy available in the U.S., Chapter 7 and 13, before we explore if one can file for bankruptcy multiple times. 

Chapter 7 liquidation or straight bankruptcy can help release you from most debts without having to repay them. This is done by selling some of your possessions, like a second home or other luxury items such as jewelry and artwork and using the proceeds towards settling creditors’ claims. To be eligible for Chapter 7, applicants must pass the “means test” which gauges whether there is enough income available after essential bills are taken care of that could go toward paying back debt holders. 

In comparison, Chapter 13 bankruptcy reorganizes your debt instead of eliminating it. Based on the court’s approval, you will have to make payments corresponding with a repayment plan customized according to your income and expenses. On average this payment period is set between three and five years; if all terms are met within these years, then some of the remaining debt may be discharged at its conclusion. 

So that brings us back to the main point of this article — how often can you file for bankruptcy? 

When considering filing for bankruptcy again, it is important to consider the type of bankruptcy – Chapter 7 or 13 – and how long ago your previous filing was completed or dismissed. If you have had a Chapter 7 discharge within the last 8 years, or a Chapter 13 discharge or dismissal within the last 6 years, then unfortunately you may not be eligible for another bankruptcy until that time has passed. 

Furthermore, for either chapter to be filed again there must have been no fraudulent activities performed during any past filings or dismissals. Also, you need to demonstrate that meaningful efforts were made towards becoming free of debt in the same period (such as evidence of attending credit counseling classes). 

Making the choice to declare bankruptcy is a difficult decision, so it’s essential to be mindful of when and how often one can do this. If you think that filing for bankruptcy may be in your best interest, call Lewis and Jurnovoy, P.A right away at (850) 432-9110. 

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