Are you struggling with debts that you cannot pay? Are creditors calling you at home and at work? Have you received threatening letters, been served with a debt collection lawsuit, or are facing a foreclosure or repossession? You may have considered filing bankruptcy to resolve your debt problem but are unsure if a bankruptcy is the best way to get rid of your debt. You may have heard that you will lose all of your property if you file bankruptcy or that you will never qualify for credit if you file bankruptcy.
Unfortunately, most of the information you read online or hear from others about filing bankruptcy is unreliable. The only information you should believe should come from a trusted bankruptcy attorney.
The bankruptcy lawyers of Kain & Scott have helped thousands of people throughout Minnesota file bankruptcy. We understand that you have many questions about the right time to file bankruptcy. Filing for bankruptcy is nerve wracking, especially if you're unsure the timing is right. Here are a few things you should consider when deciding if it is the right time to file for bankruptcy.
It May be a Good Time to File Bankruptcy If:
You are experiencing stress about your financial situation.
Dealing with debt problems causes a great amount of stress and anxiety, which can lead to serious health problems including high blood pressure, eating disorders, sleep disorders, and depression. If you are constantly feeling stressed or anxious about your financial situation, it is time to file bankruptcy. Filing a bankruptcy to eliminate your debt problem will relieve your stress, improve your financial situation, and give you the fresh start you need to take back control over your finances.
You are falling farther and farther into debt each month.
If you are borrowing from one person to pay off the other each month, you will never be able to get out of debt without some assistance. Borrowing money on one credit card to pay another credit card or using credit to pay for everyday living expenses is a strong indication that it is time to file bankruptcy. If you are skipping payments or you are only able to make the minimum payments on your credit card bills, you probably want to consider filing bankruptcy.
You are about to lose your home or vehicle.
If your mortgage lender or the lienholder on your vehicle have threatened a foreclosure or repossession action, you need to act quickly. It is definitely time to file bankruptcy if you have received a foreclosure complaint or notice of a repossession. Failing to take action now may result in you losing your home and/or vehicle. Filing a bankruptcy can save both of these assets by allowing you to catch up the past due payments over 60 months rather than trying to pay the entire past due balance in one lump sum payment.
You are served with a debt collection lawsuit.
If you are served with a credit card lawsuit or other debt collection lawsuit, it is time to file bankruptcy. Filing a bankruptcy will immediately stop all debt collections lawsuits and prevent the creditor from taking further action to obtain a judgment. If you ignore a debt collection lawsuit, the creditor may be able to seize your assets after it obtains a default judgment.
You are served with notice of a tax lien.
The state and federal government can seize your assets, take the money in your bank account, and garnish your wages for a tax lien. Rather than risk a wage garnishment or seizure of your bank account, you may be able to file a Chapter 13 bankruptcy case to pay back your tax debt over time. In some cases, you may qualify for a discharge of the taxes you owe. Our attorneys can provide detailed information about discharging taxes during your bankruptcy consultation.
You have medical bills that you cannot pay.
It may be time to file bankruptcy if you have medical bills that you will never be able to pay. If you have suffered an unexpected illness or have been involved in an accident, the medical bills could reach into the thousands of dollars even if you have health insurance coverage. You can discharge medical bills and other unsecured debts in a Chapter 7 and a Chapter 13 bankruptcy case. Creditors are barred from attempting to collect a discharged debt.
Debt collectors and creditors are harassing you.
Filing a bankruptcy case immediately ends creditor harassment. The bankruptcy stay prevents creditors from taking any further action to collect a debt including sending threatening letters, contacting you by telephone, coming to your home or workplace, filing or continuing lawsuits, and contacting others about your debt.
If one or more of the above cases applies to your situation, it is time to seek the professional advice of an experienced bankruptcy attorney. Get this advice now by signing up for a free bankruptcy consultation.
