30 Apr Is Bankruptcy the Right Decision? (Part 3)
In some cases, bankruptcy isn’t only the right decision, it’s really the only decision. If you have one of the following situations, you should speak with an experienced bankruptcy attorney immediately:
1. Your wages are being garnished. Wage garnishments take a big chunk out of your paycheck, often leaving you unable to make rent/mortgage payments, car payments, pay for medicine, or even put food on your table. A bankruptcy filing will stop garnishments immediately, and may let you get back some of the money that’s already been sent to the creditor.
2. You’re facing a foreclosure or repossession. If you’ve fallen behind on car or mortgage payments and need more time than the lender will give you to catch things up, a Chapter 13 is the perfect option. It gives you up to 5 years to bring things current (even if the lender won’t give you the time now).
3. The IRS is going after you. Bankruptcy lets you discharge, or wipe out, some taxes, and a Chapter 13 gives lets you set up a 5-year payment plan on those that aren’t.
4. You’re in over your head and don’t see a way out. If you’ve been hit with a universal default on your credit cards and are paying 29%+ APR, your house or car is worth a lot less than you owe on it, you owe a lot of debt and don’t see ever being able to pay for it…well, bankruptcy offers you the opportunity for a fresh start. Most of my clients tell me that they should have filed at least a year before they call me for the first time, and they lost a lot of money trying to fix the unfixable. If this is your situation, a Chapter 7 or 13 can help you climb out from under the debt mountain.
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