Whether you’re struggling to make ends meet or dreading constant calls from creditors because of overdue bills, then you may be considered bankruptcy as an option to help you overcome your debt. However, there could be other options – like debt consolidation – that could help. So, how do you know if bankruptcy is right for you?
The following are several common signs that you should file for bankruptcy:
You are not earning enough income to overcome your debt – Many people who are struggling financially may skip making the monthly minimum payments. Unfortunately, not only could you be charged late fees, but you will also be charged interest on such fees, which can further increase the debt that you are in. In addition, if you are paying off credit card debt with another credit card, then this is a sign that you should file for bankruptcy.
You are being frequently contacted by creditors – If you are receiving calls from creditors and collection agencies several times a week – or even a day – and you have been avoiding answering these calls, then bankruptcy can help you put a stop to such activity. As soon as you file your petition, an automatic stay will be put in place to halt actions by creditors to collect debts.
You could lose your home – Your home is your most prized possession because it offers you and your family a sense of comfort and security. If you could potentially lose your home to foreclosure due to outstanding mortgage payments or other debts, then bankruptcy might be right for you. Through Chapter 13 bankruptcy, for example, you could create a three- to five-year repayment plan to make up delinquent payments and restructure your other debts.
You have exhausted all your savings – From your retirement to your children’s college tuition, your savings are the key to your family’s future. However, if you have spent all your savings and emergency funds to keep up with your bills, then this is a clear sign you must file for bankruptcy.
If you are interested in filing for bankruptcy in Harrisburg, PA, contact Dethlefs Pykosh & Murphy today at (717) 975-9446 today to let us examine your finances. We offer flat-fee rates and payment plans with no hidden costs!