If you find yourself struggling with debt, the good news is that you are not alone. The chances are that you probably know a friend, neighbor or relative that has had trouble managing debt and one time or another. In fact, they may even have filed bankruptcy.
Many feel that the term bankruptcy carries many negative connotations, but that’s just not true. In fact, in reality, bankruptcy is an effective tool you can use to reorganize your debt while getting your finances in order. Not only that, but bankruptcy could be what you need to help you avoid foreclosure on your home or possibly save your car from repossession.
For some people, the signs that show it’s time to file for bankruptcy might be more obvious than others. For example, a stack of overdue payment notices and threats of repossession or foreclosure might lead them to begin the process. However, for others, the signs to declare for bankruptcy are subtler. The following are a few examples that show you should file for bankruptcy:
No income and a lot of debt
If you are someone with very little to no income and the bills keep mounting, it is probably a good idea to file for bankruptcy. Additionally, if you are a senior citizen facing these problems, it would be more advantageous for you to file. You will have to pass an income test in order to qualify. If the pension you receive is too high, you might have to explore other debt relief options.
Unpaid medical bills
Health insurance may not cover all of your medical costs and other expenses. If you cannot pay the bills and they keep coming fast and hard, then bankruptcy might be right for you. While bankruptcy might be able to eliminate your medical bills, it will only apply to old debts. In other words, any medical expenses you incur after starting the bankruptcy process will not be eligible for discharge.
Overwhelming credit card debt
If you are only managing to pay the minimum on your credit card debt and you are using them for necessities (like grocery shopping due to a lack of available cash), it is probably a good idea to take a hard look at bankruptcy. Before you do this, take a full inventory of all of your bank accounts and any other assets. Then, compare this to your total debt. If the debt is more than your assets, bankruptcy is probably the right decision.
Contact us today
When in need of a compassionate bankruptcy lawyer, Vancouver, Washington residents know they can turn to us for real results. Our honest and friendly staff works diligently to deliver great results every time.
Please give us a call at 360-695-8886 to schedule your free consultation today, or to learn more about our services. We also have staff that speaks fluent Japanese or Spanish.