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Signs That It May Be Time to File for Bankruptcy

Posted on in Bankruptcy

Illinois bankruptcy lawyersThe decision to file for bankruptcy is not one easily made, but those that know how to recognize the signs of serious financial trouble may be more prepared for the process. Those same indicators can help one determine when to proceed with the process. Learn what these signs are, discover what options may be available to you, and gain insight into how an experienced attorney can assist with the process in the following sections.

Combatting Common Bankruptcy Myths

Before one can truly determine if bankruptcy may be the appropriate path, they must first understand what bankruptcy is and what it is not. For example, many people believe that bankruptcy will result in a loss of all assets, including their home and personal vehicles. Thanks to the protection of certain excluded assets, this is not always the case. Yet, even if your home or primary vehicle is in jeopardy, it may be possible to negotiate an option that will work for you and your creditors.

Another common myth is that bankruptcy ruins your credit. While, yes, it can have a negative impact on your credit rating, the overall damage could be worse if you continued to miss your payments. Bankruptcy stops the collection process and wipes the slate clean so that you can begin building new credit, rather than trying to constantly (and unsuccessfully) play catch-up.

One should also understand that bankruptcy does not eliminate all debts in every case. Instead, there may be some debts that cannot be discharged. Some of the most common examples of such debts include student loans, back debts to the IRS, and back child support.

Signs You May Need to File for Bankruptcy

While only you can truly determine when it is time to file for bankruptcy, there are a few signs to look out for – signs that you could be in over your head. If you are experiencing them, or at an immediate risk of experiencing them, contact an experienced attorney as soon as possible. These signs include:

  • Wage garnishments,
  • Lawsuits from your debt collectors,
  • Constant calls or mail from debt collectors,
  • You are in fear of losing your home or vehicle,
  • You cannot pay your basic bills,
  • You have maxed out all your credit cards,
  • You are using loans or credit cards to pay your bills,
  • You experience physical or psychological symptoms of stress.

Contact Our DuPage County Bankruptcy Lawyers

At Davi Law Group, LLC, we understand just how stressful financial problems can be. Committed to helping you find a better future, our DuPage County bankruptcy lawyers can examine your situation, explain your options, and help you take the next step. We then work swiftly and diligently to stop creditor harassment and improve your immediate situation. Get the fresh start you deserve. Call 630-580-6373 and schedule your consultation with us today.

Source:

https://www.debt.org/bankruptcy/chapter-7/

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