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The Law Office of Adam R. Weaver, Esq. Lehighton & Carbon County Bankruptcy Attorney

Signs It Might Be Time To Start Considering Bankruptcy

BankruptcyCouple

Filing for bankruptcy may feel like giving up. It may feel like filing for bankruptcy means you are a failure. But the reality is that filing for bankruptcy does not mean you are a failure. It doesn’t mean you are giving up. The truth is that bankruptcy can help you get financial relief and start over, as it has helped many people. Every single year, hundreds of thousands of people file personal bankruptcy cases.

The following are some of the signs you should look out for that could indicate it is time for you to start thinking about bankruptcy:

You Cannot Pay Off Debt

If you have too much debt to the point that you cannot pay off all your debts, it is likely time to start considering bankruptcy. For example, if you are struggling to pay off debts such as your mortgage, auto loan, tax debt, student loan, or credit card debt, it could be a sign that you should start considering filing for bankruptcy.

You Are Missing Payments

If you are forced to choose which bills to pay and which not to pay, it could be an indication that it’s time to start considering bankruptcy. If you cannot pay all your bills, it could be a sign of excessive debt. Often, people are unable to pay all their bills after spending most of their money on debt repayment.

You Do Not Qualify for Debt Management

Debt management can be an alternative to bankruptcy. Debt management entails getting your debt under control through financial planning and budgeting. But to qualify for debt management, you need assets or income. If you do not have assets or an income that can allow you to qualify for debt management, it could be a sign that you need to start considering bankruptcy.

You Are Considering a Consolidation Loan

A consolidation loan is a loan you take to pay off multiple debts. If you are considering taking such a loan, it could be a sign that you should sit with a bankruptcy attorney and discuss whether bankruptcy could be an option for you.

You Are Considering Withdrawing Early from your Retirement Account

An early withdraw from your Retirement Account typically carries with it a 10% early withdraw fee as well as income tax ramifications when you subsequently file your personal income taxes.  In a bankruptcy case, most retirement accounts are fully exempt assets and cannot be liquidated to pay creditors.  You may be using exempt money to pay off debts that are dischargeable through a bankruptcy case.  In other words, throwing away good money at dischargeable debts that you could otherwise keep to improve your future financial circumstances.

You Are Receiving Phone Calls From Debt Collectors

Another obvious sign that it might be time to start considering bankruptcy is if you have started getting phone calls from debt collectors. You might ignore debt collectors, but that will not stop them from contacting and harassing you.

You Have Maxed Out Your Credit Cards

It is a bad sign if you have run up the maximum allowable balances on your credit cards. You will likely not be able to increase your maximums or get approval for other types of loans. It’s also not a good sign if you rely on your credit cards to cover basic expenses like groceries because you do not have an income.

You Cannot Sleep at Night

Financial problems are a leading cause of stress. If you lose sleep because of money problems, it could be time to consider bankruptcy.

Overwhelming Debt is Causing Marital Problems

Many married couples main source of discord is the stress of overwhelming debt and a feeling of helplessness to dig themselves out of it.  Seeking the advice of a financial planner or bankruptcy attorney to discuss options on how to get out of debt, and improve your finances, may resolve many stressors that financial problems may cause in a marriage.

Contact a Pennsylvania Bankruptcy Attorney Today

Contact a Lehighton & Carbon County bankruptcy attorney at the law offices of Adam R. Weaver, Esq., if you have financial problems and need legal guidance.

Source:

uscourts.gov/news/2021/01/28/annual-bankruptcy-filings-fall-297-percent

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