Finances, particularly in regards to your amount of debt, can be a struggle for anyone. If your debt is continually rising with no sign of stopping, filing for bankruptcy could be a viable option. Filing can help you avoid a complete financial meltdown. Here is a look at some clear signs that it’s time to call a bankruptcy lawyer.
Your Cash Flow Is In Serious Trouble
Normally cash flow problems are a sign that you may need to file very soon. In this scenario, you are behind on multiple payments with different creditors and you can’t see a realistic solution to your problems. If you get behind on payments for more than half a year, it may be time to file.
In this scenario, you are behind on your mortgage or car payments and you are facing repossession. If you file Chapter 13, you can create a plan for repaying your debts while maintaining control of your assets. Once you have a manageable repayment plan, you should be able to avoid foreclosure or repossession.
You’re Taking Out Loans
While taking out personal loans is a common solution when you are short on cash, it’s not ideal. Personal loans often come with a high interest rate and non-negotiable repayment demands. In the event that you don’t have any money to cover the money that you borrowed, you may have to consider filing.
No Additional Income Is Coming In
Many people have consistent, steady jobs. However, you may find yourself in a similar situation to others, where you haven’t received a raise. Unless you receive a raise or add another part-time job to your schedule, you may go through some financial issues trying to manage your paycheck amount every month. If things start to get overwhelming, consider filing.
You Are Struggling To Make The Minimum Payments
If you are struggling to make the minimum payments, your financial situation could change for the worse very quickly.
You Can’t Pay Everything Off In Five Years
Develop a financial strategy for how you plan to deal with your debt. If you have created a plan and you are still unsure that you will be able to pay off your debts in 5 years, you may need to file through Chapter 7.
You Are Facing Default
If you are constantly getting notifications about overdue bills, something needs to change. Check to see if there is a way that you can refinance your debt before you go into default. Filing can help you get rid of your unsecured debt.
Maxed Out Credit Cards
When you are struggling with your finances, you may decide to rely on credit, especially if your savings have been drained. Do not rely on credit cards, as that will only increase your problems moving forward.
Find out more about Bankruptcy in our guide: All About Bankruptcy
Learn about the ways bankruptcy can help you. Contact us for a free consultation by clicking here or calling (912) 351-9000. We’re here to help you gain the financial freedom you deserve. The Law Offices of Barbara B. Braziel proudly serves the greater Savannah, GA area.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.