How can you tell if you should file Chapter 7 Bankruptcy? Suppose Al has credit card debt of 20k and a medical bill for $2,500.00. Al makes the minimum payments but Al is not decreasing the principal balance much and when he is finished paying all of these minimum payments, he has little left over to purchase groceries, pay rent, pay utilities, and vehicle expenses so he can do it again next month.
Being cash poor stinks and then to be cash poor with no real hope of paying the debt off for many years can sink any human into a full blown depression. Here are some of the ways to tell you should be considering a Chapter 7 Bankruptcy:
- You spend almost half your income on servicing debt. If you spend about half your income on servicing debt, this is untenable. You cannot survive by giving half your income to your creditors each month. Time to think about a Chapter 7 Bankruptcy;
- You think about your debt every day. If you find yourself thinking about your debt often enough the debt is a problem and you should consider filing Chapter 7 Bankruptcy;
- If you find yourself missing or behind on debt service payments, error on the side of considering a Chapter 7 Bankruptcy. If your credit has already suffered because of delinquent payments, what is the difference? I would rather be debt free than have debt with bad credit;
- Even if you are current on all your debts, if the juggling act is about to come to an end, and you know it, consider filing Chapter 7 Bankruptcy. We have filed bankruptcy for many people who have told us they are current on all their payments, credit score is good, BUT they see the freight train coming down the tracks.
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When the time is right, or when you are ready to consider getting your life back, reach out to LifeBack Law Firm by going now to www.lifebacklaw.com. You will be so thankful you did.