Though bankruptcy offers many benefits and has long been a protection extended by the law, there are still many misconceptions about it. Many struggle under crushing debts for years when they could have filed for bankruptcy and gotten a clean slate — all because they either don’t understand the options available to them or because they feel ashamed by the stigma attached to the filing.
It is important that you talk with an Avondale bankruptcy lawyer so that you understand what your rights are and get the debt relief you need. You may find that bankruptcy is not the right option for you, or you might find that you have a wonderful opportunity to get a fresh financial start.
At What Point Should I Consider Filing for Bankruptcy?
Here are a few ways that you might know that it’s time to file for bankruptcy:
You are Relying on Credit for Necessities
Credit cards should be reserved for emergencies or for careful use to establish a positive credit history. If you find that you have to use your credit cards to purchase things like groceries or to pay for monthly expenses like your utility bill or your rent, it likely means that you are having trouble making ends meet.
If you don’t have the money to pay for those necessities, you won’t have the money to pay for your credit cards either. That means that you are only racing toward the inevitable when you cannot pay for any of it.
Filing for bankruptcy may be able to help you wipe out that debt and clear up money to pay for your basic needs. Some lifestyle changes might be in order, as well, so that you can be sure you are living within your means.
You are Only Paying the Minimum Payment on Your Credit Cards
When you pay only the minimum payment on your credit cards, you will never pay them off unless you never use them again. Paying only the minimum payment is another sign that you are having a cash-flow problem, and the debt is sure to compound over time and only make that problem worse.
Bankruptcy may free you from that mounting debt, allowing you to channel that money into other needs, such as your home or retirement savings.
You are Being Harassed by Collectors
Are you afraid to answer the phone lest it be another collector calling you? That’s a sure sign that your debt has gotten out of control.
Filing for bankruptcy will put an end to those calls. While you are under the protection of bankruptcy, collectors can no longer call you and they no longer have a claim against you. Your unsecured debts will be discharged under Chapter 7, or your debts will be restructured into a payment plan under Chapter 13.
You Feel that Your Finances are Out of Control
When paying your bills every month starts to feel like a juggling act, you probably need to consider filing for bankruptcy.
Being under a constant state of financial stress is not only limiting to your financial future, but it also creates a number of personal problems. You may suffer in your relationships because you are fighting over money or because you feel like you can’t provide what you want for your children. Filing for bankruptcy may pull you out of that stressful state and give you the breath of fresh air that you need.
Before You File for Bankruptcy
If you feel like it might be time to consider filing for bankruptcy, there are a few things you need to do first.
You need to make a list of all your options. Can you meet with a financial advisor and create a working budget that allows you to live within your means and start paying down your debt? Or can you work with a debt settlement agency to bring down your interest rates?
You need to understand the pros and cons of all your options, including bankruptcy. The benefits of bankruptcy can include wiping out your unsecured debt and freeing up the money to save your home. However, the consequences can include having problems getting credit for many years or even losing some of your assets.
By meeting with a bankruptcy lawyer, you can learn more about your bankruptcy options and understand how filing will affect your home, your retirement accounts and other assets.
My AZ Lawyers can help you understand your bankruptcy options and how they might benefit you. An experienced bankruptcy lawyer from our team can review the financial details of your case and let you know how bankruptcy can positively or negatively affect you. If you choose to file for bankruptcy, one of our Avondale bankruptcy lawyers will handle all the paperwork for you to ensure that you follow proper legal protocol and get the full benefits of the filing. Call us today to schedule a consultation.
My AZ Lawyers
12725 W. Indian School Rd., Ste E, #101
Avondale, AZ 85392
Office: (623) 499-4222