Have you considered filing for bankruptcy? When you’re trapped in an unforgiving debt situation, filing for bankruptcy may be your best option. However, the process is very daunting to handle on your own. Bankruptcy law is very complicated, and going to court brings a new challenge: understanding all of the legal procedures and processes. Consider meeting with a bankruptcy lawyer to discuss your options. If any of these ten scenarios apply to you, then you should probably schedule a meeting as soon as possible.
- Creditors are on your back.
When you’re receiving non-stop emails, letters, and phone calls, you know your situation is serious. If creditors’ infrequent phone calls have turned into regular occurrences—and if you’re at risk of being sued or facing levy—it’s time to seek legal help.
- You’re living in the red.
Is your bank account perpetually in overdraft? Do your expenses and debts overwhelm your income? If you’re “living in the red” with no end in sight, you should consider meeting with a bankruptcy attorney.
- You’re living on the margins of your credit.
Relying on the little bit of credit available on your credit cards is dangerous. You’re digging yourself into a deeper hole—a hole with high-interest rates that can only intensify your financial struggles.
- Even though you’re making your monthly payments, you’re being denied credit.
With a huge burden of debt on your shoulders, it can be hard to get new credit, even if you make timely payments every month. Lenders will review your credit history and essentially see a big “WARNING” sign on your back.
- You’ve exhausted your savings.
Everybody should have an emergency fund in case they lose their job or find themselves very ill. Many people like to save for fun expenses, such as vacations. When you’ve completely exhausted all of your savings and you’re not able to rebuild your savings, you have a dire debt situation.
- You’ve fallen behind on your mortgage or car payments.
Defaulting on your mortgage is often the last resort. If your debt is preventing you from paying for essential expenses, you should absolutely speak to a bankruptcy lawyer.
- You’re taking money out of your retirement account.
Not only is this a desperate measure, but it comes at an additional financial cost to you. Withdrawing money or taking loans against your 401k (or other retirement account) comes with additional fees. What are you going to do if you can’t repay what you took?
- You’re paying your monthly minimums…with another credit card.
When you’re paying off a credit card by racking up a balance on another card, you’re not solving any problems. You’re only shifting debt around.
- You can’t make all of your payments every month.
Are you dreading the end of the month because you know you can’t pay all of your obligations? If you’re drowning in your debt, your situation will only worsen unless you seek help.
- You’re ignoring the severity of the problem until it’s too late.
Ignorance is bliss, and you might have willfully ignored how deep in debt you are. You haven’t checked your credit score in months, and you’ve been ignoring calls from creditors. Don’t wait until you’re sued to meet with a bankruptcy lawyer.