When should you start thinking about declaring bankruptcy?

Even more challenging than making the decision to declare bankruptcy is accepting the reality that you may soon be forced to do so. Filing for bankruptcy allows you to start over financially without having to worry about any of your past mistakes. The procedure has both benefits and drawbacks, though. Is it time to file for bankruptcy or is a simple budget revision enough to stabilize your finances?

If you are considering filing for bankruptcy, consider taking help from lawyers at Benenati Law Firm.

Ignoring mail is something you’ve started doing.

Because of their mounting debt, many people avoid checking their mail or simply ignore the stacks that accumulate there. They are aware that the majority of these communications are collection letters or notices of past-due payments. It may be time to consult a bankruptcy attorney if you have stopped checking your mail or have begun to disregard what does arrive.

Debt Collectors are Constantly Calling You

In the United States, debt collectors are prohibited from using abusive or threatening language or behavior under the Fair Debt Collection Practices Act. Your phone won’t ring more than once a day, and they can’t contact you at odd hours. Even so, not all debt collectors are up to par with the rules. Debt collectors and creditors who harass you can be dealt with legally, but doing so may also indicate that you need to seek bankruptcy protection.

An automatic stay is issued by a bankruptcy judge as soon as a bankruptcy petition is filed. As soon as the stay is issued, you will no longer be contacted by creditors or debt collectors regarding your debt.

It’s Clear That Your Income Is Insufficient To Meet Your Costs

Bankruptcy should be considered if one’s income is insufficient to support current living costs in addition to debt payments. In order to get back on track and ensure that your income is sufficient to pay all of your expenses, you will likely need to find some way to boost it. Most unsecured obligations, including unpaid medical bills, credit card balances, and utility bills, can be discharged in bankruptcy. If you’ve gotten off track, this could be the first step toward getting back on track and ensuring that your income is sufficient to pay all of your obligations.

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