Filing for bankruptcy can often be difficult if you are planning on doing it for the first time. Many people fear filing for bankruptcy, believing that their credit history and financial future will be forever destroyed. These are the top signs that it is time to file bankruptcy. A little warning on your credit history may be better than any possible debts. These are the top reasons to file for bankruptcy.
It is difficult to pay your bills
You might consider bankruptcy if you are having difficulty paying for your daily necessities. A fresh financial start can make it easier to pay rent and other basic bills.
You May Lose Your Home:
Filing for bankruptcy may be the best option if you’re facing foreclosure and are having difficulty paying your mortgage payments. Chapter 13 may allow you to keep your assets while you pay your debts.
A Debt Collector Will Take You To Court
If you haven’t made your loan payments in a while, you may be receiving calls from debt collectors or even a lawsuit. They could file a lawsuit if you are unable to pay them up or respond. These creditors are automatically stopped from suing you if you file bankruptcy.
Your Debts Are Unsecured
You can reduce the number of your unsecured debts by filing Chapter 13 bankruptcy. Or, you can get rid of all your debts through Chapter 7.
No Savings Available
It can be dangerous to go through your life without an emergency fund. You could find yourself in an awkward situation if you have drained your savings. You can save your emergency fund by having more of your income available.
Contact our bankruptcy lawyers today if you’re interested in filing for bankruptcy.
This article was written by Alla Tenina. Alla is the best bankruptcy attorney in Los Angeles California, and the founder of Tenina law. She has experience in bankruptcies, real estate planning, and complex tax matters. The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.
A Chapter 13 lawyer will lay out an effective plan that will cover your debts and have sufficient income to cover your everyday expenses. However, for filing chapter 13 bankruptcy, the debtor has to meet certain eligibility criteria. A lawyer will help determine the eligibility and further guide you on the counseling course before filing for bankruptcy.