Signs You Should File For Bankruptcy

Signs You Should File For Bankruptcy

Going through financial hard times is stressful, but what’s even more worrying is accepting that you are insolvent. You need to know when to file for bankruptcy to avoid losing your assets. Unfortunately, most people neither assess their financial situation regularly nor make the necessary adjustments until the time is too late. Failure to file for bankruptcy could get you into a deeper problem that could have been avoided.

This guide highlights signs you should file for bankruptcy. Keep reading.

You Have Used Up Your Savings

An exemplary sign that you need to file for bankruptcy is if you have used all your savings to pay bills. Savings are usually put aside to take care of emergencies and future needs such as kids’ college tuition or expanding your business. Using up all your savings to keep your life going is a sign that you need to protect your assets.

You Rob Peter to Pay Paul

If you use money that would pay one debt or bill to pay another, you need to start thinking of filing for bankruptcy. Most households and businesses get to this point where they have to skip some payments to take care of others or take a new loan to clear old debts. If you’re in this boat, bankruptcy might be the right option for you.

Your Debts Are With Collection Agencies

Collection agencies typically handle loans where the borrower has skipped several payments. Therefore, if collection agencies call you constantly, and you’re unable to clear the debts, selling your assets or business may not be the solution. You should consider filing for bankruptcy.

You’re in Trouble With Creditors

You might never know how serious your financial situation is until creditors decide to sue you — and they win. Creditors who win a court case against you can quickly get the authority to seize your assets. If you have reached this point, consult a lawyer to help you file for bankruptcy before it’s too late.

You Face Foreclosure

Is your mortgage lender about to file for a foreclosure? You need to take the right protection measure to keep your home. Under Kansas law, for example, your primary residence and some assets are exempt from liquidation. You should hire a reliable bankruptcy lawyer who understands liquidation exceptions to safeguard your properties until you catch back on your mortgage payments.

You Face Threats of Wage Garnishment

In certain instances, debt collectors can come for your salary, where your employer cuts off a certain amount from your paycheck to settle your debts. Wage garnishment might adversely affect your life, and you should not overlook it. Filing for bankruptcy stops creditors from taking this step.

You Live Paycheck to Paycheck

You need to explore bankruptcy options when you live from hand to mouth. If your bills and debts are more than half your annual income, you are living paycheck to paycheck. Within no time, you might find yourself in a situation where your debts are uncontrollable, which may cost you your assets. You can avoid this by filing for bankruptcy.

Just remember, in Kansas and Missouri, certain financial obligations, such as student loans and child support, are not discharged after filing for bankruptcy. This means that you’ll still need to pay such debts.

If your assets are at risk due to financial crises, talk to our bankruptcy attorneys. Our attorney can help you with the information, documentation, and legal advice before taking you through the process of filing for bankruptcy. If you’re in Kansas or Missouri and you need to file for bankruptcy, contact us today to get help from our seasoned lawyers at Wiesner & Frackowiak, LC.

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