Many people mistakenly believe that filing for bankruptcy is a path they must avoid at all costs, overlooking the fact that, sometimes, filing for bankruptcy can be the only way to protect your assets and help you overcome financial hurdles. While it is not an easy choice to make, it is definitely better than having to endure serious legal consequences. Once you file for bankruptcy, you are protected by the law from debt collectors, which takes immense pressure off your shoulders and allows you to focus on getting back on your feet as soon as possible. Whether you are going through some financial struggles at the moment, or if you just want to learn more about bankruptcy, you will find this article helpful. Here are some signs you need to look out for so that you can know when it’s time to file for bankruptcy.
You Are Facing Foreclosure on Your House
Failing to commit to your mortgage payments when they are due can subject you to foreclosure, which means that you will be compelled to either find a quick sale or be denounced of any ownership rights to your own home. If you live in the United States, you know this is a very common scenario, especially given the current turbulent economy. According to New York-based lawyers at https://www.nylegalhelp.com/, bankruptcy is one of the potential options that can help you avoid foreclosure. When you file for bankruptcy, the foreclosure process is automatically put on hold, you will then have the chance to renegotiate your mortgage terms and request a reduction in the amount you owe. Even if you do not get the debt-cut you were initially shooting for, you will at least have some extra time to examine other possible options.
You Are Dipping Into Your Savings
You have probably heard this advice from older folks over and over again; always make sure you have enough savings for a rainy day. Savings are meant to be your safety net for financial emergencies. However, if you notice that you are depending on your savings for day-to-day expenses, that is an alarming sign that you need to start thinking about filing for bankruptcy. It is not smart to waste the money that took you years to set aside to pay off credit card debt or car loans. Filing for bankruptcy will give you the breather you need to turn your financial situation around while at the same time keeping your savings account untouched.
You Need To Get Loans to Pay Off Expenses
Just as is the case with savings, you are not supposed to use loans to pay off gas bills and buy groceries. If your financial situation is bad enough that it is the only way you and your family can get by, it is time to consider filing for bankruptcy.
You Are Putting All Your Expenses On Credit
Once you notice that you are reaching for your credit cards more than usual and relying on them much more than cash in your checking accounts, then you obviously have a problem, and bankruptcy might just be in the cards for you.
Creditors Are Chasing After You
When more than a handful of creditors are chasing after you to collect what you owe them, then you clearly have a problem. As mentioned before, filing for bankruptcy will save you from these nightmarish calls and give you the chance to write off all the debts that you can’t see yourself repaying anytime soon.
The Topic of Money Gives You Anxiety
Ok, this might be a little tricky, however, it is one of the most basic signs that you need the help that filing for bankruptcy can offer. Money issues are always sensitive and like most people, you probably face some financial challenges every now and then, which is completely normal. However, when the mere thought of your financial situation makes your heartbeat a little faster and your palms immediately start to sweat, then you should be honest with yourself and admit that you are in too deep. Not only will filing for bankruptcy put your mind at ease, but it will also give you a chance to start fresh so that you can better plan your finances on a clean slate and avoid your past mistakes.
If you can relate to one or more of the above signs, make the right decision, and seriously consider bankruptcy. Ask your friends and family and do your research to find an experienced bankruptcy attorney who will have your back and help you come out of this situation with the least possible losses. Keep an open mind and drop any stigmas you have about bankruptcy so you can focus on building a better financial future.