When filing for bankruptcy makes sense?
Filing for bankruptcy is not something to be taken lightly. That being said, you can find comfort and confidence in your choice when you know it is the right one. In order to determine if bankruptcy is the best course of action, you’ll want to take a close look at the debts you owe versus your income and savings. Here are some tell-tale signs it may be time to file bankruptcy.
1. Paying for bare necessities is a struggle
You should not have to choose between which bills you can afford to pay on a monthly basis. Nor should you be using credit cards or personal loans to pay for basic needs.
2. Unable to make credit card payments in full
Missing the occasional payment or having to pay the “minimum due” amount every now and again is okay. However, if this is a regular occurrence, it is a red flag.
Side note: Taking a cash advance out on one card to make the payment on another is an additional problem that will just delay the inevitable. This is not a solution. In fact, this tactic will actually cause your debt to grow over time.
3. Getting calls from collection agencies
If it’s gotten to the point where your stomach is in knots whenever the phone rings for fear it is another collection agency, you’ve got a problem. Ignoring these calls could lead to lawsuits from one or more debt collectors and many additional legal fees you can’t afford to pay.
4. Debt consolidation becomes appealing
There are plenty of companies out there claiming they can lower your monthly debt payments, which can sound very attractive when you are struggling financially. But don’t be fooled. In the long run, you’ll end up paying significantly more in interest. It’s like putting a band-aid on a wound that won’t heal without proper medical treatment.
5. Garnishing of your wages
If and when a debt collector wins a lawsuit, they have the legal authority to get their money back by freezing your bank account or garnishing your wages. This means your employer will have to withhold a certain amount of your paycheck until the debt is paid back.
6. Foreclosure on your home
A home is supposed to be the place you feel safe and secure. However, the inability to pay your mortgage can lead to unwelcome feelings of insecurity and even foreclosure. It is every homeowner’s worst nightmare that can become a reality if you don’t take the right course of action quickly.
Tired of it all?
Whether you have experienced one or several of the above-mentioned warning signs, the weight of carrying these financial burdens can weigh heavily on you. Believe it or not, foreclosure can be an effective way to alleviate that burden while ensuring you are able to keep the things that matter most to you.
Take a moment to step back and think about your options. When it comes to gaining a renewed sense of financial freedom, filing for bankruptcy could likely be the answer. Speaking of answers, the qualified team at McCune Legal is here to provide you with them. Call for your FREE 30-minute consultation and ask all the questions you’d like.