Many people struggle financially. However, there comes a point for some people when they may need to examine their financial situation and take steps to get back on track.
They may need to consider filing for bankruptcy. But how do you know when you get to this point?
Below are seven signs that it is time to file for bankruptcy, as well as information on how to connect with a bankruptcy attorney to help you file for bankruptcy and rebuild your finances.
If someone is continually unable to pay their basic bills, such as a rent or mortgage, the minimum on a credit card, or groceries, it may be one of the signs it’s time to consider filing for bankruptcy. It can be extremely stressful to live paycheck to paycheck and worry every month about how to afford the basics. Those who are unable to pay these bills will further experience the stress of bills piling up. And, likely being charged more for late fees, adding to the overall debt.
For those who have loans, such as student loans or a car lien, being in a bad financial situation can compound the issue. If someone is unable to pay back loans, it could have negative impacts on their credit score. Their interest rates on their loan could increase or there could be late fees for the missed payments.
If someone needs to pull from savings or their retirement, such as their 401k, in order to pay basic bills, it may be one of the signs it is time to meet with a qualified bankruptcy attorney to understand their options. Pulling from these funds can have impacts on one’s future financial situation, so it is important to recognize the long-term financial consequences of this action—and work to limit the amount of money being taken from these accounts.
If someone has continually missed payments or has not paid off their creditors, they will begin to receive constant calls from these bill collectors. Creditors must wait 30 days after a missed payment before calling, but they are extremely persistent, and the calls will not stop until the person pays back the debt in full or files for bankruptcy. Bankruptcy puts a temporary hold on all creditors collecting money or reaching out to a client for money.
Taking the phone calls a step further, debt collectors can sue a person and take them to court for lack of payment. If this happens, the person will owe even more money, as they will be responsible for the court fees and other legal fees associated with the lawsuit. If someone is being sued by creditors, it is a clear sign that their finances are in a bad place and that real steps, such as filing for bankruptcy, must be taken to remedy the situation.
Once someone has faced a lawsuit from a creditor, they have a right to garnish money from the debtor’s wages to pay off the debts. This has more impact on someone’s ability to pay off other debts, from their car loan to their mortgage. Filing for bankruptcy will halt the wage garnishing. Likewise, a bankruptcy attorney can help decide how to file and get back on track so this does not continue.
In a situation where debts have not been paid off, creditors’ calls have been avoided, and a person has no income with which to pay off their mortgage, they may face foreclosure on their home. At this point, a person should seriously consider filing for bankruptcy because they are at risk of losing their home.
If you are experiencing any combination of the above, it is time to speak with a bankruptcy attorney. At Blue Bee Bankruptcy, our attorneys have over 60 combined years of experience in handling bankruptcy cases. We help clients select the right filing option for bankruptcy, eliminate their debts, and rebuild their credit. Our attorneys are educated and trained in bankruptcy exemptions, chapter 7, chapter 11, chapter 13, consumer protection, foreclosure defense, and small business bankruptcy.
We know that filing for bankruptcy can be a stressful and overwhelming process for clients. The bankruptcy attorneys at Blue Bee work hard to make the process as stress-free as possible for our clients. Call us at (801)285-0980 or visit our website at https://bluebeebankruptcy.com/ for more information.
At Blue Bee Bankruptcy, our lawyers are highly experienced in the various filing options. More importantly, we understand that each case we receive is unique and each client has different needs and goals. We will discuss these signs with you and decide the best route to take.
We strive to help our clients rebuild their lives and take steps toward a better financial future through filing.
If you’re dealing with the potential of bankruptcy, give us a call. Our team will work to help you by reviewing all of the options our firm has available. We will ensure you’ll get the best possible outcome for your situation.
Get in touch today so we can start working on either halting bankruptcies or preventing them from taking place altogether!
Contact Us Today For Help! You can schedule your free consultation online or call us at (801) 285-098.