This week’s blog post is a collaborative effort with Philadelphia-based law firm, Jensen Bagnato, P.C. While they are a full-service law firm offering a wide range of legal services, like Thistle Law, they specialize in Bankruptcy, Debt Relief, Foreclosures, Immigration Legal Services, and Divorce. Read more about when you may want to consider reaching out to Jensen Bagnato to discuss Bankruptcy and ensure you’re on the right path.
It’s easy to get behind on bills. Whether it’s a matter of overenthusiastic spending and under-enthusiastic budgeting or a catastrophic illness that created overwhelming medical bills, if collection notices and calls have you dreading your mailbox and phone, it may be time to consider bankruptcy. This legal action can help you wipe away debt and get a fresh financial start, but many people hesitate before considering it. Whatever view you take, if debt is significantly affecting your life it may be your best bet. Here are a few signs that it’s time to consider bankruptcy:
- Your bills are out of control, to the point where you’re using credit cards to pay them. This is a road to financial ruin: the more you use credit, the greater the spiral you find yourself in. If you’re at the point where you can’t pay for living expenses but you’re only able to make the minimum payment on your credit cards, you may have dug yourself a hole that only bankruptcy can help you escape.
- You’re afraid of losing your home. Foreclosure is one of the top concerns that drive people to bankruptcy. If you can’t keep up with your mortgage and the bank has threatened foreclosure, it’s time to consider filing for a Chapter 13 bankruptcy. Chapter 13 allows you to hold on to your home by creating a payment plan to get out of debt. It may even eliminate or lower the amounts you owe.
- Debt collectors are taking it to the next level – If you’ve avoided debt collectors calls and letters and they’ve stopped calling, it’s not a sign that they’re moving on: it means they’re taking you to court and you’ll owe both your unpaid bills and legal fees. Filing for bankruptcy stops debt collectors by issuing an automatic stay. Unpaid bills will be discharged, and you won’t hear from your creditors’ representatives again.
- Creditors have garnished your wages – Wage garnishment is one of the most effective tools available to debt collectors. They get a court order that requires your employer to give them a portion of your paycheck until they’ve gotten their money. This cuts the income you have to support yourself and your family, making an already-bad situation even worse. Filing for bankruptcy’s automatic stay stops wage garnishment in the same way it stops calls from debt collectors.
To discuss your situation and how filing for bankruptcy can help, contact Jensen Bagnato today to set up an appointment.