How To Know If You Are Ready To File For Bankruptcy

Posted on: 13 November 2014


Just because you have been struggling financially, does not mean that you automatically have to run to the bankruptcy attorney to file for bankruptcy. However, it is important to know when it is time to file for bankruptcy. The last thing you would want to do is to put the issue off longer than needed. So, take a moment and review the following key points that should tell you whether it is truly time to file for bankruptcy with the courts.

You Cannot Keep Up With Payment Plans

One of the first things to do when you fall behind with your creditors is to arrange repayment plans. With a repayment plan, you will pay your set monthly payment, plus an additional amount on top of that which will be put towards paying the arrears. If you find that no matter how many times you try that you are not able to keep the agreements you make for the plans, it might be time to file for bankruptcy.

Every Month You Fall Further Into Debt

It is one thing if you were able to stay afloat in the position you are in and simply have a problem getting caught up. It is something completely different if you find that you are not even able to do that. If you find that you are not even able to keep up with your monthly expenses and that you are falling further in debt every month, you may need to seek out the advice of a bankruptcy lawyer.

You Are Being Threatened With Lawsuits

If you are receiving calls or letters stating that you are going to be taken to court over the money that you owe, you need to talk to a lawyer. The last thing you want is to find yourself stuck with a judgment on your record that will follow you around for many years. In addition, you do not want to risk losing your home or anything else over a small debt that might attach itself as a lien to your property.

Should you happen to find that any of the above mentioned issues are things that you are experiencing, you are going to want to quickly set an appointment to speak to a bankruptcy attorney. This way, it can be decided if you are ready to file and which type of bankruptcy would be best for your personal situation. If you want more help, contact a company like Idol Law Firm with any questions or concerns you might have.