If you’re in debt and the situation isn’t improving, you may be considering bankruptcy. You’ve probably asked: When should I file for bankruptcy? The answer is different for everybody, but there are several indicators and factors to consider.
There Are Many Reasons to Consider Bankruptcy
Bankruptcy is designed to be a tool to help debtors obtain financial relief. There are many reasons to consider bankruptcy, but the main reason involves getting out of debt. So when should you file for bankruptcy? If you’re facing the below challenges, bankruptcy could be your best move.
Your Debt Continues to Grow
If you’re trying to put money aside each month but still don’t have enough to reduce your debt, filing for bankruptcy could be best. Bankruptcy gives debtors a fresh start by discharging certain debt and consolidating debt to make it easier to pay off. When you work with our Ohio bankruptcy attorneys, we can help you figure out if bankruptcy is your best option.
You’re Struggling with High-Interest Debt
Certain types of debt, like credit card debt, carry high-interest penalties and amounts. As a result, not paying off these debts means that interest grows and becomes even harder to pay off. If high interest rates are pushing you further and further into debt, bankruptcy could be one solution. Taking action sooner rather than later could also be to your advantage financially; high interest means your debt grows faster, making getting out of debt harder and harder.
Creditors Are Harassing You
Creditor harassment in the form of incessant phone calls, letters, or other means can be a real problem. Not only is such harassment aggravating, it can also be demoralizing. Bankruptcy puts a quick end to creditor harassment. Once you file for bankruptcy, a provision called the automatic stay goes into effect. As a result of this provision, by law, creditors can no longer contact you about your debt, ending harassment. Our Ohio automatic stay attorney can explain more.
You’re Facing Foreclosure or Repossession
If you’re facing foreclosure of your home or repossession of your vehicle, declaring bankruptcy can put an end to these issues. Once you file for bankruptcy, any foreclosures or repossessions in progress may be halted. People often file for bankruptcy in order to protect their assets. By filing, you may be able to more easily work out a repayment plan to protect your vehicle, car, and other needed assets.
Your Wages Are Being Garnished
Having your wages garnished limits your ability to choose how to spend your money. Having that ability taken away could even hinder your ability to pay back debt and to regain financial control. If your wages are being garnished, filing for bankruptcy may stop this. While some bankruptcy plans involve required repayments, a managed plan should give you more control and options compared to having your wages garnished.
You’re Facing a Lawsuit or Legal Action
If you’re in debt and are facing a potential lawsuit or have already been sued, bankruptcy can stop legal action. After declaring bankruptcy, current or pending legal action will be stopped by the automatic stay. Taking effect immediately, the automatic stay is a provision that essentially stops any debt-related legal action against a bankruptcy filer.
You Simply Don’t See Another Way Out of Debt
If you’ve been struggling to pay off debt and the amount of your debt is only growing, bankruptcy can be the financial reset that you need. It’s often best to consider bankruptcy before you get further into debt. If trying to save money to pay off debt isn’t working, consider speaking with one of our attorneys about your options.
So Should You File for Bankruptcy?
Once again, there are many reasons to consider bankruptcy. Everyone’s financial situation is different, and there may be other considerations that lead you toward filing for bankruptcy. We recommend speaking with one of our Ohio bankruptcy attorneys if you’re considering filing for bankruptcy. We can help assess your situation and finances and see whether bankruptcy is your best option.
Remember, life after bankruptcy can be an improvement. For many people, bankruptcy really does provide the fresh financial start needed. Instead of being dragged further into debt, bankruptcy can provide financial relief for many.
Other Bankruptcy Considerations
You may still be wondering, should you file for bankruptcy? Be sure to consider the type of debt. Some debts — like child support payments, student loans, court fines and penalties, alimony, and some types of tax debt — cannot be discharged by bankruptcy. Therefore, speaking with an Ohio bankruptcy attorney can help you determine if bankruptcy is your best option.
Life after Bankruptcy Can Be an Improvement
It’s true that life after bankruptcy can be an improvement. Many people in similar financial situations have filed for bankruptcy, completed repayment periods, and regained control of their financial lives.
At Fesenmyer Cousino Weinzimmer, our bankruptcy attorneys in Ohio have worked with thousands of people just like you. We work to analyze and understand your finances and your unique situation. In short, we want all of our clients to regain control of their finances. If that means bankruptcy is your best course, we’ll walk you through the process worry free.
Give our legal team a call today and ask for a free consultation.
614-228-4435 (Columbus), 937-222-7472 (Dayton), or 877-654-5297 (Cincinnati).
