How do I know I need to file bankruptcy?

20 Feb How do I know I need to file bankruptcy?

“How do I know when it’s time to file bankruptcy?” Just like banks say that they don’t want to file foreclosures, people don’t want to file bankruptcy either. Here are some of the most important warning signs:

  1. You can no longer make even minimum monthly payments on your credit cards.
  2. You are falling behind several months on your mortgage or car payments
  3. You are being called every day by debt collectors, at home and at work.
  4. You have been sued for a debt
  5. A judgment has been entered against you.
  6. Your wages have been garnished
  7. Your bank accounts have been frozen
  8. You are very ill and can’t pay your medical expenses
  9. You have been unemployed for a long time and can’t meet your living expenses.
  10. You are getting divorced and find that two households are much more expensive than one.

When you have experienced any or all of these things, bankruptcy is most often the best relief available to you.

Congress insists that you get “credit counseling” before you can file a bankruptcy case. This session will take you an hour or two and will confirm the obvious to you. Bankruptcy is your only option.

Even if you must file bankruptcy, you have to be sure that the time is right. For example, you may have filed a chapter 7 case within the past 8 years. You’ll have to wait to file a chapter 7 or else file a chapter 13 case. You may anticipate other debts arising before you file, like condominium association dues on a unit in foreclosure until the time that the mortgage lender actually takes title. Or you may be ill and hospitalized and unable to pay your medical expense. Or you may be out of work and unable to make ends meet. Talk with your attorney. It may be in your interest to wait for awhile before you file your case.

Lakelaw helps people in Illinois and Wisconsin file for bankruptcy.

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