Bankruptcy offers a way out for borrowers struggling to keep their heads above water, but the key to maximizing the benefits is choosing the right time to file. Waiting too long means living with the stress of constant financial pressure, and throwing money away on interest payments and late fees. Below are a few signs it’s time to consider filing for bankruptcy.

When Should You File for Bankruptcy? 

1. You Can Only Afford the Minimum Payments

The minimum payments on credit cards and charge accounts are designed to maximize profits for the creditors, not get you out of debt. If you can only afford to pay the minimums, you’ll likely have to pay back several times what you originally borrowed, which could take years to achieve. Filing for bankruptcy allows you to get out of these debts and start your life over again.

2. You’re Being Harassed by Creditors

Being unable to pay your debts is difficult enough, but constant harassment from creditors makes a bad situation even worse. Fortunately, filing for bankruptcy triggers an automatic stay that puts an immediate stop to all collection activity, including phone calls, letters, and lawsuits.

3. Your Creditors Have Taken Legal Action

If they decide the expense is worthwhile, your creditors might file a lawsuit to collect the money you owe. If they succeed, they can put a lien on your property, have your wages garnished, and even seize your assets.

4. Your Lender Is Threatening Foreclosure

Most mortgage lenders won’t accept partial payments on past due amounts, making it almost impossible to catch up if you’ve fallen behind. Fortunately, a chapter 13 bankruptcy will allow you to make up the arrears on your mortgage while putting a stop to the possibility of a foreclosure.

Since 1987, Mark Briden Law has been helping struggling borrowers throughout Shasta County, CA, get back to a solid financial place. Because they focus exclusively on bankruptcy law, you can be confident you’ll receive effective representation and sound advice informed by an in-depth understanding of the legal processes. Visit their website to find out how they can help, or call (530) 222-1664 to start exploring your debt relief options. They offer free consultations over the phone or in their office. Additionally, they have payment plans available.