Bankruptcy is a useful financial tool if you’re facing a lot of debt. When you file, creditors are legally required to stop contacting you for the duration of the proceedings. If your case is successful, your debts will be discharged. Although filing for bankruptcy can lower your credit score, this solution can relieve a lot of finance-related stress. If any of the below signs apply to you, it may be time to take action. 

3 Signs You Should File for Bankruptcy

1. You’re Relying on Credit Cards

If your savings have dried up, you may use credit cards for needs like food. This will lead to more debt and damage your credit further if you can’t pay the statement each month. Credit card debts are unsecured, meaning that they may be discharged under Chapter 7 or Chapter 13 bankruptcy. However, keep in mind that secured debts—such as child support and back taxes—can’t be discharged.

2. Your Home Is in Danger

If you can’t afford your mortgage payments, the lender may want to foreclose your home. Filing for bankruptcy will hit the pause button and buy you time to figure out the next steps. The house can’t be foreclosed on as long as the proceedings are open. You may even be able to save the house by filing for Chapter 13 bankruptcy, which allows you to choose a repayment plan that best works for you. 

3. Creditors Are on Your Case

Creditors can be ruthless, calling you constantly. They may even sue you for the money they’re owed. A bankruptcy discharge will put a stop to this stress. With a Chapter 7 filing, your debts are discharged in a matter of months; but assets, such as cars, may be seized and liquidated to pay off creditors. Chapter 13 better protects your assets but requires you to pay a portion of what is owed under a new repayment plan over a period of four to five years before remaining debts are discharged.

For assistance filing for bankruptcy in Farmington, CT, trust Greene Law PC. This law firm provides knowledgeable legal counsel and will guide you through the process, from advising on which type of bankruptcy to file to handling the paperwork. Their attorneys pride themselves on their individualized service and will give you honest insights. Visit their website to review the law firm's practice areas or call (860) 676-1336 to speak with a bankruptcy attorney.