Image source: SimplyChurch.com
By the time most clients reach out to us, they are deep in debt with nowhere else to turn. We understand that sometimes things happen and major life upheavals such as sickness, divorce or job loss can wreck your finances making it hard for you to envision recovery. But what many are surprised to find out is they could have gotten a better result if they had considered bankruptcy before thing got so bad. If you’re struggling with your debts, here are five signs that bankruptcy may be able to help with your dilemma:
#1 If you cannot pay your bills each month
If you are never able to pay your bills on time, this is a sign that you’re saddled with too much debt. If you have enough money, but are spending irresponsibly and flaking out on your bills, that’s not what we mean. If you simply aren’t earning enough to cover all of your debts each month, are getting hammered with late fees and accrued interest because you are constantly late and don’t have any hope of getting current anytime soon, you may be a candidate for bankruptcy.
Image source: NewsBomb.gr
#2 If you are debt spending each month
If your wages are not enough to support you, this is a problem. If you are maxing out your credit cards, borrowing from others, asking your boss for advances on your paycheck and require well more than you earn to service your debts, pay your mortgage (or rent) and other life necessities, you may need to assess your lifestyle and look for opportunities to cut back (cheaper car, cheaper house, no cable, etc). But if there’s just too much debt compared to income, you may be a good candidate for bankruptcy.
#3 If you have taken out a payday loan or title loan (or more than one)
Title pawns and payday loans are one of the worst types of debt you can engage in. And despite that payday loans are illegal in North Carolina, online loan sharks are still willing to transact with our state’s residents and offer cash at sky-high interest rates. If you are considering or are already stuck deep in this type of financing arrangement, you may be able to get out from under it in bankruptcy. If it’s a title pawn, you’ll likely lose the vehicle if you can’t redeem the loan, but a payday loan with no collateral can be wiped out in chapter 7 or chapter 13, making you a good candidate for bankruptcy.
Image source: MoneyMaxTitlePawn.com
#4 If you have been sued, garnished or stalked by collection agents
If you are terrified to answer your home or cell phone and are making excuses to your employer for the repeated phone calls at work from creditors, you need some relief. If your mailbox is stuffed with bad news including collection letters that are threatening a lawsuit or notices that you are being sued or a garnishment is being pursued against you by a debt collector, you should know that as long as you meet certain criteria, you may be a good candidate for bankruptcy.
#5 If you are behind on mortgage payments and are in risk of losing your home
If you are already behind on your mortgage payments or know that if things continue on as they are, you will be soon, this can be scary. If you’ve taken out a second mortgage to try and pay off your debts but are now struggling with that as well, you may fear what will happen if you default on this agreement. Depending on how much equity you have in your home, the size of your monthly payments, income and other expenses, you may be able to shed your second mortgage in bankruptcy and keep your home. If this is your circumstance, you may be a good candidate for bankruptcy.
We can’t help if you don’t call, but what we can tell you is that if your financial situation is dire and you don’t expect it to get better, there’s no reason to wait until you’ve hit rock bottom to file for bankruptcy protection. The sooner you get help, the sooner you can get started rebuilding your credit and move onto a financial fresh start. Contact the law offices of John T Orcutt for more information on filing personal bankruptcy in North Carolina.