5 Signs It’s Time to Consider Wilmington Bankruptcy

Wilmington bankruptcy can change your life

Image Source: Flickr User James Willamor

Last year, more than 794,000 consumers in America filed personal bankruptcy, and if you’re a Wilmington consumer deep in debt, this might be a good solution for you, too. Filing bankruptcy is like getting a fresh financial start, and when you’re struggling with bills you can’t pay, it can be life-changing. Here are five signs that it might be time to consider bankruptcy instead of muddling on with our debt.

#1 If You Can’t Pay Your Debt in Reasonable Time

For Wilmington residents living paycheck to paycheck, the stress of debt can be all consuming. It can affect your health, diminish your quality of life, and impact personal relationships. But how can you know your debt is too much?

One rule of thumb is if, outside of your home and car loans, it would take you more than a year or two to pay off your debt. Another measure recommended by some financial gurus is if, aside from mortgage and auto loans, your debt exceeds one year of salary.

#2 If Your Credit Score Is Taking a Beating

You might have heard that filing Wilmington bankruptcy will ruin your credit for a decade. This isn’t true. In fact, filing bankruptcy often stops a credit score free fall and helps you recover. If you’re running late on debt payments, your score is taking a hit every month.

If your credit cards are maxed out, your credit score will drop every month. If you have negative items and collection accounts on your credit report, your score is dropping. Bankruptcy can stop the bad stuff and allow you to start rebuilding your credit with a clean slate.

#3 If Debt Collectors Are Harassing You

For Wilmington residents scared to answer their phone, bankruptcy can put an immediate stop to the harassment of debt collections. Dealing with debt collectors is stressful because many cross legal lines and can be abusive. This can take a toll on your mental health.

Debt collectors calling at work can affect your work performance and call negative attention to you on the job. They may call you at work, home, and on your cell phone. The moment you file bankruptcy, all debt collection efforts must stop, or it’s a violation of federal law.

#4 If Your Credit Cards Are Maxed Out

One troubling sign of excessive debt is hefty credit card balances. If your credit cards are maxed out, not only will your credit score take a beating but you’ll also be stuck paying loads of interest. This can trap you in an endless cycle of struggling to pay minimum payments.

When you only pay minimums, it can take years to reduce your balances and see you paying much more than your original balance – and that’s on top of the interest and impact on your credit score. Credit card debt is one of the easiest types of debt to discharge in Wilmington bankruptcy.

#5 If You’re Facing Foreclosure or Repossession

For Wilmington consumers threatened with foreclosure of their home or repossession of their vehicle, bankruptcy can stop these actions and allow you time to find an alternative. In some cases, surrendering an unaffordable asset with no equity is wise.

But in other cases, it’s just a matter of buying time to catch up. Chapter 13 bankruptcy can help you get on a repayment plan to catch up, and Chapter 7 bankruptcy can help you unload an asset you can’t afford. Either way, the filing will temporarily stop foreclosure or repossession.

If you’re struggling with debt and want a better life with some financial breathing room, consider the benefits of Wilmington bankruptcy. Contact the Law Offices of John T. Orcutt today for a free Wilmington bankruptcy consultation.

Call +1-833-627-0115 now for a free appointment at one of our convenient locations in Raleigh, Durham, Fayetteville, Wilson, Greensboro or Wilmington.