If you’re struggling to pay down debt but the interest alone is accruing faster than you can handle it, you might be considering filing for Chapter 7 or Chapter 13 bankruptcy. To determine which suits your situation, turn to a bankruptcy attorney from Pearce Law Firm in Foley, Bay Minette, and Atmore, AL. Their experienced legal team explains when a bankruptcy filing is right for you.

3 Instances When Bankruptcy Is a Good Option

You Are Facing Foreclosure

If you’re unable to keep up with your mortgage payments and your lender is threatening to foreclose on your home, you can delay or stop it by filing for Chapter 7 or Chapter 13 bankruptcy. This will enact an automatic stay that prohibits your lender from moving forward with the foreclosure proceedings. Under Chapter 13 terms, it also allows you to work with your creditors to devise a plan to catch up on missed payments.

You Are About to Lose Your Car

If you rely on your vehicle to get to and from work, losing it will make your financial situation worse. If your lender is about to repossess your car, declaring bankruptcy will pause the process until you and your attorney determine the best way to proceed.

You Are Facing Eviction

If your landlord is threatening eviction due to lack of rent payments, you could be left homeless. As long as you are not being forced out of your residence due to drug use or other illegal behavior and your landlord has not gotten an eviction order from the court, filing for bankruptcy can stop the process. Depending on the type you file, it even could allow you to devise a payment strategy to pay off your rent debt.

If you are considering filing for bankruptcy, turn to an attorney from Pearce Law Firm in southern Alabama to discuss your options. Visit their website to learn more about the legal counsel they provide, and call (251) 368-2992 to start taking control of your finances by discussing them with an experienced bankruptcy attorney.