3 Signs It’s Time to Consider Filing for Bankruptcy

An Experienced Winfield Bankruptcy Lawyer Can Answer Your Questions

Filing for bankruptcy is a big decision. Before you file for bankruptcy, you should be sure that you understand all of benefits and disadvantages. Here are three signs that it is time to consider filing for bankruptcy – before you make a decision, be sure to consult with an experienced Indiana bankruptcy attorney.

1. You Are Delinquent on Your Mortgage and the Lender Has Threatened Foreclosure

If you fall behind on your mortgage payments for a prolonged amount of time, your lender has the right to repossess your home and force its sale in order to recover the balance of your loan – this is known as the foreclosure process. Losing a home can be a very troubling experience, and is both stressful and emotional. If you are unable to pay your mortgage and foreclosure is possible, you should consider filing for bankruptcy to, at the very least, halt the process.

2. You’re Being Sued by Debt Collectors

Here’s how the debt collection process typically works: A party to whom you owe money contacts you requesting payment. If that request goes unanswered, then the party will turn you over to a collection agency. If you do not pay the collection agency, then the debt collector may actually file a lawsuit against you in order to force you to pay them the money owed. A lawsuit is not only stressful, but can result in you paying more money than you originally owed as a result of court fees.

When you file for bankruptcy, you will be granted an automatic stay against your creditors, meaning that you are – at least temporarily – protected from harassment.

3. You Have No Income or Your Wages Are Being Garnished

One of the worst situations is one in which you owe thousands of dollars of debt and you either: have no income to speak of or are having your wages garnished by a creditor, preventing you from getting the money you need to pay for basic costs of living or pay off other debts.

If you find yourself in either of these situations, you should consider filing for bankruptcy. Through Chapter 7 bankruptcy, a large percentage of your debts will be discharged, which can provide you with a huge amount of financial relief. What’s more, the automatic stay that you get when you file for bankruptcy will put wage garnishment on hold.

Contact the Whitten & Whitten Today

If any of the above situations apply to you, you may be a good candidate for filing for bankruptcy. Before you rush into anything, please contact our experienced Indiana bankruptcy attorneys at the Whitten & Whitten We have more than 20 years of experience helping our clients improve their financial futures.