If your debt has become unmanageable, you might wonder if bankruptcy is the right solution. Fortunately, there are some signs that often mean filing is an appropriate course of action. Below, bankruptcy lawyer Ron Anderson at Anderson Law Firm in High Point, NC, shares three signs you may want to consider filing.
3 Reasons to Consider Bankruptcy
1. The Debt Far Outweighs Your Ability to Repay It
First, compare your income to your current living expenses and outstanding debts. If your income is sufficient enough to only cover basic living expenses with nothing, or next to nothing, left over to put toward the debt, then you probably cannot repay what is owed. Bankruptcy provides a viable path out of debt and a new financial beginning.
2. Your Home Is Being Foreclosed
People facing a home foreclosure can also benefit from a bankruptcy filing. The court will issue an automatic temporary stay, giving you some time to come up with a plan. You could elect to sell the house and put the money toward repaying the debts under Chapter 7 bankruptcy. If you file for Chapter 13 bankruptcy, you may be able to keep the house by keeping up with both current mortgage payments and the repayment plan.
3. You're Being Sued by Creditors
Declaring bankruptcy won't make a lawsuit go away, but you are afforded some legal protections by filing while being sued by creditors. The automatic stay issued by the court offers protection the way it does in a foreclosure. Any legal action by debt collectors must stop until the case is discharged. This gives you and a bankruptcy lawyer time to reorganize your finances and be prepared to take on a lawsuit.
Working with an experienced bankruptcy attorney is the easiest way to determine whether you qualify for this type of debt relief. Call Anderson Law Firm at (336) 431-7336 or visit them online to schedule an appointment with a bankruptcy lawyer, so you can prepare the necessary documents and prepare a strategy. Follow the firm on Facebook for additional tips.
The information contained in this site is for general guidance on matters of interest only. The application and impact of laws can vary widely based on the specific facts involved. We are a Debt Relief Agency. We help people file for Bankruptcy Relief under the Bankruptcy Code.