Maybe you’re struggling to make ends meet as a result of a failed business or a job loss, or you’ve gotten in over your head with unsecured debt, and don’t see how to get through the financial storm. But there is a way you can wipe the slate clean. Though it should be a last-resort option, in some cases bankruptcy might be your optimal solution. The benefits of finding debt relief through bankruptcy almost always outweigh the risks. By delaying this decision, with more debt piling up, you may put yourself in even worse financial situation and lose the assets you could have used to start over after declaring bankruptcy.
Here are some signs that could indicate you should start contemplating filing for bankruptcy and seek the services of a skilled bankruptcy attorney in El Cajon or another area you live.
Difficulty paying bills
You should consider declaring bankruptcy if your expenses are higher than your income due to circumstances beyond your control. As above mentioned, maybe you may have suffered a job loss or you have large unpaid medical bills. The result is the same: you are consistently missing deadlines, not being able to pay your monthly bills. If even your minimum payments are too much to handle, you are in a serious financial situation you shouldn’t ignore.
Very high debt you are unlikely to pay off
If you have no realistic means to repay your debt within a reasonable time frame, you will likely need to look at discharging your debt through bankruptcy. If you see no way of paying back your credit card debt in two or three years, declaring bankruptcy might be a way to move on. Keep in mind that at some time, sooner rather than later, creditors will want to get paid. Debts gain interest and if you keep failing to make payments, there’s a strong possibility you will face the debt collector’s phone calls and letters. Don’t wait for that to happen, because if you don’t address the rising issue, you may have to deal with a debt collection lawsuit and risk having your wages garnished, your bank account frozen or restrained. If your mortgage payments stay unpaid for a certain period of time, you may face foreclosure and be in danger of losing your home.
Liabilities exceed your assets
If your assets worth less than your liabilities, you are technically insolvent. This means the total value of your assets like investments, savings and other property is much less than the amount of money you owe. Many people fear potentially losing all of their assets after filing for bankruptcy, unaware that bankruptcy may actually help them protect their car, house and other properties from creditors. At Chang & Diamond, APC, bankruptcy attorneys will present you state law exemptions that may be available to you.
Thinking about consulting a bankruptcy attorney in El Cajon?
Bankruptcy can save you money and get you back on your feet. On the other hand, it can also be expensive and impact various aspects of your life like buying a new house or a car. Filing bankruptcy is certainly a major decision that shouldn’t be made lightly. Therefore, it is essential that you find a lawyer that will help you comprehend both positive and negative effects that a bankruptcy will have on your life.
If you are struggling to pay off your debts and you’re not sure if bankruptcy is for you, and you’re in need of an experienced bankruptcy attorney in El Cajon, lose no time scheduling a free initial consultation. At the San Diego and Riverside County law firm of Chang & Diamond, APC, bankruptcy attorneys will inform you of your options so that you can make a fresh start. Contact us at (619) 312-4900 or (800) 718-8118.