Life can throw some serious financial curveballs, and sometimes, getting back on track means making tough decisions. Here are ten signs that it might be time to consider filing for Chapter 7 bankruptcy:
1. Overwhelming Debt
When your debt feels like a mountain you can’t climb, and you see no realistic way to pay it off within a few years, it might be a sign to consider Chapter 7. This includes credit cards, medical bills, and other unsecured debts.
2. Facing Foreclosure
If you’re at risk of losing your home and have tried every possible solution to no avail, Chapter 7 might offer the relief you need by temporarily halting foreclosure proceedings.
3. Wage Garnishments
Having your wages garnished can make it nearly impossible to cover your basic living expenses. Chapter 7 can stop wage garnishments and give you a fresh start.
4. Collection Harassment
Having your wages garnished can make it nearly impossible to cover your basic living expenses. Chapter 7 can stop wage garnishments and give you a fresh start.
5. High Credit Card Balances
If you’re only able to make minimum payments on your credit cards and the balances keep growing, bankruptcy might help you discharge that debt and start over.
6. Unable to Make Minimum Payments
When you can’t even make minimum payments on your debts, it’s a clear sign that your financial situation is untenable. Chapter 7 can help wipe the slate clean.
7. Liquidating Assets
Selling your belongings just to make ends meet is a desperate measure. If you find yourself in this situation, it might be time to look into Chapter 7 for a more sustainable solution.
8. Lawsuits
If creditors have started suing you for unpaid debts, Chapter 7 can halt these legal actions and give you a chance to address your financial issues.
9. Payday Loans
Reliance on payday loans is a vicious cycle that leads to more debt. Bankruptcy can help break that cycle by discharging payday loans and other high-interest debt.
10. Medical Bills
Unexpected medical expenses can cripple your finances. If you’re drowning in medical debt with no way out, Chapter 7 can provide the relief you need.
Conclusion
Recognizing these signs early can help you make an informed decision about whether Chapter 7 bankruptcy is the right option for you. It’s important to consult with a bankruptcy attorney to explore your options and create a plan that best suits your needs. Feel free to reach out to schedule a free consultation with Mark Kafantaris to talk over your situation. You can book a call through this site, send us a message, or reach us by phone at 614.223.1444.
