3 Situations When Filing For Bankruptcy May Be Beneficial
When you are dealing with a significant amount of debt that you aren't sure how you are going to pay off, you may be considering talking to a chapter 13 bankruptcy lawyer. You've tried to work extra hours, rearrange your budget, etc. so that you can pay your financial obligations, but you just don't see how it is going to work out for you in the end. Luckily, you do have options when it seems like there is no light at the end of the tunnel for you and your finances. Keep reading to take a look at three situations in which filing for bankruptcy is often a beneficial and effective solution.
Excessive Unsecured and Unmanageable Debt
When you have a significant amount of debt obligations, it is difficult to make those monthly payments—especially on time. These debt obligations may include anything from personal loans and credit card debt to medical and hospital bills, as well as other consumer debts. It is likely that you have creditors constantly calling you, threatening lawsuits, despite the fact that you are doing everything that you can to make the minimum payments that have likely gotten out of hand due to your inability to pay. Bankruptcy can be a solution to help you out of the rut that you have found yourself in.
Wage Garnishments
Eventually, when you don't make your minimum payments and the amount that you owe gradually increases, some creditors may begin to garnish your wages, which reduces the amount of your monthly income. If you have no other financial resources to support yourself and your family, it is important to consider bankruptcy as an option.
Repossession or Foreclosure
It may be possible that you have gotten so behind on your automobile payments that your car is about to be or has already been repossessed. If you have a mortgage on your home, you may find yourself in the middle of pre-foreclosure. If you are renting your home, you may be several months' behind on rent and your landlord is threatening to evict you or has already sent you the eviction notice. Bankruptcy can assist you with repossession and foreclosure situations.
If you find yourself in any of the aforementioned situations or any other dire financial situation, call a bankruptcy attorney in your area and schedule a consultation to discuss your situation to see what your options are. More often than not, there is a way out, so don't give up hope before talking to a professional.