How Do I Know if I Should File for Bankruptcy?

A lot of us struggle with finances and have thousands of dollars in debt. You keep thinking you will get ahead soon. Maybe you will get a raise. Perhaps you will get a large tax refund.

But then something else happens. Your car dies and needs a major repair. Your child needs surgery. Your refrigerator dies. Your dog ate something poisonous and needs to go to the emergency vet.

These issues are all costly, adding thousands of dollars to your already massive debt. You keep digging a bigger hole. What are your options?

If every other form of debt relief has failed you, it is time to consider bankruptcy. Bankruptcy is not something that anybody wants, but it can be a very helpful tool if you are drowning in debt. If creditors are calling you constantly and garnishing your wages for various debts, it may be time to throw in the towel and get a fresh start.

The three main causes of bankruptcy are divorce, job loss, and medical bills. But even if you have not experienced any of these, bankruptcy may still be a good idea. Here are some signs that bankruptcy may be on the horizon.

You are Using Your Credit Cards for Everything

Credit cards are not meant to be used for everyday expenses unless you are using them for rewards and paying them off right away. If you are using credit cards for gas, groceries, and other daily purchases, or worse yet, using them to pay off other debts, then you may find your balances getting larger every month.

Your Assets are in Danger

If you are getting calls that your vehicle is in danger of repossession or the mortgage company is sending you letters saying that foreclosure is imminent, you cannot simply ignore them and do nothing. By filing for bankruptcy right away, you may be able to protect these assets with a payment plan or some other method.

You are Being Harassed by Creditors

If you are getting phone calls from various creditors on a daily basis, you need to take action. The next steps will be wage garnishment, bank account levies, repossession, and lawsuits. Bankruptcy can protect you from all this, so talk to your lawyer right away.

You Have Exhausted All Your Options

If you have talked to your creditors, have tried a debt settlement, asked for a loan from family members, and increased your income to no avail, bankruptcy may be your best option. It works quickly to wipe out your debt. If you want to keep your assets, then you can work out a payment plan. Bankruptcy may not be your preferred option, but it will offer the relief you need.

Contact Our West Palm Beach Bankruptcy Attorney Today

You may have a lot of debt, but is filing for bankruptcy a good idea? Know the signs so you can make an informed decision.

West Palm Beach bankruptcy attorney Brian K. McMahon, P.A. can help you make the right decisions regarding bankruptcy. We’ll assess your case to see if it is right for you. Schedule a consultation today by filling out the online form or calling (561) 658-1789. We serve the West Palm Beach, Boca Raton, Port St. Lucie, and South Florida areas.