When your bills pile up faster than you can pay them back, it starts to feel overwhelming. Perhaps you are out of work or making less money than you did before. You need a solution that will help you get back on track with your finances.
You have heard of bankruptcy, but what does that mean? How do you know if you should declare bankruptcy? Will it help your unique situation?
What is bankruptcy?
Bankruptcy is a legal process to help you get some relief from your debts. It stops wage garnishments, collection calls and legal claims against you. There are several different types of bankruptcy filings, and choosing the right option depends on your circumstances.
Should you file for bankruptcy?
Bankruptcy proceedings have drawbacks, and you may want to consult a professional to discuss whether it is a good option for your situation. Consider the following concerns:
- Your home is under foreclosure
- You send only the minimum amount due on your credit cards each month
- You pay all your bills with credit cards
- You pay your credit card bills with other credit cards
- You plan to withdraw funds from your retirement account
- You are facing legal claims against you
- You get calls from bill collectors
- You do not know the total amount of money you owe
- You feel out of control and overwhelmed financially
The federal courts handle all bankruptcies and can be a good option for discharging some of your debts and helping you get back on your feet. It is essential to understand the legal process and the consequences before you file.