About four years ago, I could tell that things were turning south with my business. Cash flow was tight, and customers simply weren't coming back to shop some more. I realized that if I was going to keep my house, I would need to do something to resolve my finances. Although it was scary, I decided to meet with a bankruptcy attorney. After I explained my situation, he helped me to understand the process and how to tell if it was a good idea or not. When I decided to do it, things started changing for me right away. This blog breaks down bankruptcy in layman's terms, so that you can decide whether or not it is right for you.
Money troubles can sneak up on you if you aren't careful but when those troubles turn into fears of losing property and court judgments then you know that things are getting serious. If you fail to take action in time and declare a chapter 7 bankruptcy, you might be making matters even worse. Read on to learn how to know when it's time to file for bankruptcy.
Your Basic Needs Are Going Unmet
Living from one paycheck to the next is one thing, but when you are struggling to put food on the table and pay for a roof over your head you know you're in trouble. When your budget is so stressed that an emergency car repair or an unplanned medical need makes you panic, you may need to take a hard look at how much of your income is getting eat up by making the minimum credit card payments.
You Are About to Lose Your Home to Foreclosure
Remembering how hopeful and positive you felt when you bought your home might be just a painful reminder of how far out of control your financial situation has become. When you fail to pay your mortgage, the balance grows larger due to late fees and interest costs. Sooner or later the lender will take legal action against you and bankruptcy may be the only way to stop the proceedings.
While the automatic stay that a chapter7 bankruptcy provides will temporarily put a stop to foreclosure actions by the lender, you will still need to get caught up if you want to keep your home. Fortunately, you may have more cash available once you file since you'll no longer owe money for your credit cards.
You Are Using Your Credit Cards Just to Get By
Credit cards are convenient to use and it's all too easy to lose track of your spending when you use them, which makes high credit card debt one of the main reasons some declare bankruptcy. It gets worse, however, if you are having to use your credit cards to pay recurring bills and for groceries and gas. If you find yourself taking cash advances and using that money to pay other credit card payments, then you are getting desperate. You may be struggling just to make ends meet and have lost all sense of the cost of using credit in this manner. The fees and interest attached to credit cards and particularly to cash advances are truly punitive and you are essentially chasing your own tail.
If your financial state sounds like any of the above, you need help. Speak to a bankruptcy attorney and find out what a chapter 7 filing can do for you. Your fresh start awaits.
Share20 July 2018
