Financial hard times can happen to anyone, but sometimes those difficulties becomes too much to deal with on your own. Here are a few signs that it may be time to think about filing for bankruptcy.
You Cannot Pay Your Monthly Bills
If you’re having trouble meeting monthly obligations like credit card bills or utilities, it might be time to consider bankruptcy. Though it won’t change your income, bankruptcy will release you from responsibility for some of your debts, leaving you with more income to pay the ones that matter most and decreasing your financial stress.
You Have Missed Several Mortgage Payments
After a few missed mortgage payments, your lender may have begun to threaten you with foreclosure. Bankruptcy can stop this. Under Chapter 13, you’ll establish a payment plan to become current on your mortgage. Chapter 7 has a slightly more complex way of dealing with secured debts, but it can also help you stay in your home. If you’d like to avoid foreclosure, even after missing payments, consider bankruptcy.
You’re Thinking About Cashing in Retirement Accounts to Pay Your Bills
Though you may think that you will have plenty of time to rebuild your retirement savings, cashing in these accounts is almost always a mistake, for both tax and long-term financial reasons. If your financial situation has become so dire that you want to cash in your retirement accounts, consider bankruptcy. In many cases, your retirement accounts will be protected, so you can deal with your debts without losing your savings.
You’ve Experienced a Drastic Change in Your Finances
If you’ve lost a job, experienced a medical emergency that left you with big bills, or experienced another major alteration to your financial life, bankruptcy can reduce your debt burden while allowing you to retain most of your assets. It is not without downsides, but bankruptcy can provide a way out of tough financial situations.
If you’re losing sleep because of financial difficulties, call (619) 234-3333 to schedule a bankruptcy consultation with an attorney at Golden State Law Group. We can help you through this difficult time.