6 Reasons Why Bankruptcy is a Good Idea
Bankruptcy is a good idea for a person with debts that are too high to pay back, or for a person facing a legal threat such as a collection or judgment or wage garnishment.
If you find yourself in a financial danger zone, it might be a good decision to consider bankruptcy. There are certain signs that may make bankruptcy the best possible option.
If you are…
- forced to use credit cards for everyday necessities.
- only able to make minimum payments on your credit cards and unable to pay in full.
- get frequent calls from your creditors and collectors for repaying their money.
- running scared from sorting out your financial mess.
- not knowing how much you owe to whom.
- actively considering debt consolidation.
If you owe more than you can afford to pay, you become a good candidate for bankruptcy. To determine your financial health, add up all your liquid assets, including college savings accounts, non-bank account funds, bonds, retirement funds, stocks, real estate, vehicles, etc.
Now, add up all your bills and credit statements.
If the amount of debt you owe is more than the value of your assets, you can get out of a sticky financial situation by declaring bankruptcy. Although not a cure-all option, bankruptcy may save you from the actions of your creditors.
Here are 6 common scenarios when filing bankruptcy makes a lot of sense:
- Credit card debt is too high to repay
- Home Foreclosure sale is scheduled
- Car repossession is imminent
- Medical debt is too high to repay
- IRS debt more than 3 years old still owed
- Wage garnishment
The California Bankruptcy Attorneys at Consumer Action Law Group help individuals to determine whether or not to file bankruptcy.
According to attorney Matt Faler: “The process of going through a bankruptcy is often necessary to eliminate debt and get a fresh start. However, the process of filing bankruptcy is difficult and it is best to hire a Bankruptcy Attorney to handle the complex work. We take into account of your current situation and your overall goals for filing bankruptcy.”
Filing Chapter 13 bankruptcy stops foreclosure, eliminates credit card debt, and other debts such as medical bills or personal loans. In some cases, Filing Chapter 13 bankruptcy can strip or eliminate a second mortgage lien or a third mortgage lien on a house.
Filing Chapter 13 bankruptcy stops creditors and stops collection calls immediately. A chapter 13 is also an effective way to stop wage garnishment and to recover a car that has been repossessed.
Filing Chapter 7 bankruptcy can also stop foreclosure, eliminates credit card debt,and other debts such as medical bills or personal loans. In most cases, filing Chapter 7 bankruptcy will temporarily stop a foreclosure, but it is different than a Chapter 13 when it comes to making payments for the mortgage on a house.
Filing Chapter 7 bankruptcy stops creditors and stops collection calls immediately. A chapter 7 is also an effective way to stop wage garnishment and to get a fresh start for debts that are too far behind to repay.
Las Vegas Bankruptcy Attorney Rodney Okano helps individuals in Nevada to file Chapter 7 bankruptcy.
According to Rodney Okano: “Bankruptcy under Chapter 7 is a process in which most forms of consumer debt are completely eliminated. There are no payments in a Chapter 7 Bankruptcy, however, you must qualify based on your income and expenses. With proper planning, most people keep all of their property, including their home and car.”
Millions of individuals and married couples have filed for Chapter 7 bankruptcy to put an end to creditor harassment and have obtained a financial fresh start. You can eliminate:
- Credit Card Debt
- Payday Loans
- Deficiencies on Foreclosures and Repossessed Vehicles
- Certain Income Taxes
- Medical Bills
Attorney Keith Williams helps individuals that have been involved in accidents. He recognizes that many people end up filing bankruptcy because of a life changing accident that forces a person to stop working and rack up very high medical bills.
According to Attorney Keith Williams: “It’s a comforting thought that if you are hit by another motorist and the accident isn’t your fault, you may be able to obtain compensation through the other driver’s insurance company. It’s not an easy process, but the process is still there to be used. Compensation obtained through a personal injury claim can help pay for expensive medical bills, replace lost earnings, pay for the repair of any damage to your own car and compensate for the pain and suffering experienced.”
Another common reason for mountains of debt is when a person is suddenly fired or loses their job for reasons that are not their fault. JLG Lawyers handles claims for illegal termination and loss of employment.
According to Michael Juarigue, “Our Glendale and San Francisco offices serve the needs of our clients, as well as the needs of their businesses. Many past clients return to our firm for their legal matters because of our commitment to results and personalized service. We manage every aspect of our clients’ legal problems and act as their trusted attorneys for life. If a client has a legal problem outside of our practice areas, we have a vast network of trusted referral sources and will assist our clients in finding a lawyer best suited to serve their needs.”
In conclusion, bankruptcy can be very helpful when a person has too much debt or faces a legal threat such as foreclosure of their home or repossession of their car.
Filing bankruptcy provides immediate relief from collection and legal action, and it can help a person to get back on their feet and start to rebuild their credit. Most attorneys offer free consultations; call today to find out if bankruptcy is a good idea for you.