When you’re ready to file for bankruptcy, our Georgia attorneys are here for you
Financial challenges can hit anyone, and it can be frightening to realize that you no longer have enough money to meet your needs. Job loss, health problems and divorce are just a few of the most common life events that could cause you to suddenly find yourself in troubled financial waters.
While feeling like you are over your head in debt is upsetting, you do have options for regaining your financial security. Filing for bankruptcy does have some consequences—such as potentially showing up on your credit history; however, it could be your best option if any of these signs ring true for your situation.
Sign #1: You’ve hit a major setback
Taking on a small amount of debt is normal to manage certain life events such as having a baby or going to college. Financial issues arise when the debt that you had to take on seems insurmountable or unlikely to get better any time soon.
This could be true for you if you’ve lost a job or been forced to take one that has a much lower pay rate compared to your former position. Developing a health issue that takes you out of work is another financial setback that could leave you wondering if bankruptcy is right for you.
Sign #2: Your balances aren’t getting smaller
Right now, you might be doing everything you can to pay your lenders. Making regular monthly payments should help to pay off your debt eventually, but it might not if you have high interest rates or huge loans.
If you notice that you are only able to pay the interest, then you won’t see the balances going down. This is the time to start talking to our attorneys about when to file for bankruptcy since you could be tossing money at a problem that won’t go away without serious intervention.
Sign #3: You use credit cards to cover basic needs
Credit card debt is sometimes viewed as being caused by overspending on unnecessary purchases. However, this is not true for many people. Relying on your credit cards for groceries or gas is common when you are out of work or using your income for paying off other debts. This sadly only perpetuates the cycle of debt as your balances grow.
Bankruptcy might be a solution for helping you spend your income on your basic needs rather than using your credit.
Sign #4: You’ve fallen behind on house or car payments
Access to a home and vehicle are crucial for you to be able to get your finances in order. If you’ve missed your mortgage or car payments, then you might be at risk of losing these vital resources. Depending upon the type of loan you have, you could also risk losing your property to a lender if it was used as collateral.
Filing for bankruptcy could help you to free up funds that you can use to pay for the essentials.
Sign #5: Your savings account is empty
Responsible people sometimes face unforeseen setbacks that cause them financial distress. In an effort to make good on your promises to a lender, you might have resorted to dipping into your savings to cover the bills.
Once you’ve depleted your savings, you may no longer have an option for covering your debt obligations. This can have far-reaching implications on your life if your savings were earmarked for retirement or your children’s college funds.
Sign #6: You are borrowing money to pay essential bills
Sadly, there are lenders out there who capitalize on people who are struggling to pay off prior debts. Predatory lenders may offer you extremely high interest rate loans, or they may require you to put your car up as collateral. You might have generous family members who offer you loans, but accepting them could ruin your self-esteem and your relationships if you are unable to pay them back.
Having to borrow more money to pay off other debts is one of the biggest signs that it might be time to file for bankruptcy.
Sign #7: You keep receiving calls from creditors
Debt collectors are not known for being exceptionally kind. Instead, you might be haunted by phone calls that occur throughout the day. The people who are calling you are required to follow certain rules, but that doesn’t always prevent the fear that you might feel when you hear your phone ring.
Receiving phone calls from multiple creditors is upsetting, and it’s a sign that your credit score might be heavily impacted by your inability to pay off your debt.
Sign #8: Your debt is affecting your life
Your financial health impacts every part of your life. Dealing with harassing phone calls from creditors could cause you to feel depressed and anxious. You may also worry about what will happen if you lose your home, car or other essential property. In some cases, debt can cause you to experience a severe mental illness that requires professional help.
While mental health issues need to be addressed by a counselor, choosing to file bankruptcy can help you regain a sense of control over what is happening. Renewing your hope for a better financial future can help you end the cycle of despair that debt creates.
The decision to file for bankruptcy is not one to take lightly. You’ll need to make sure that the appropriate strategies are used to settle your debt legally and with the most benefits for your financial standing. Working with our Atlanta bankruptcy attorneys gives you the guidance you need through the process of getting back on track financially.