Is bankruptcy the way to go for you?
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Is your debt is so serious that North Carolina bankruptcy is the best option to get you debt-free? For those struggling to pay bills, dealing with collection calls, debt stress and living paycheck to paycheck, life can be hard. Here are five signs that bankruptcy may be the best fit for your financial future.
#1 Your Credit Cards are Maxed Out
Credit card debt can be completely wiped out with bankruptcy. If your credit cards are maxed out, you can only pay minimums, over-limit and late fees are coming in, and there’s no way out, then you may be ready for the serious debt-relief option of bankruptcy.
Because credit cards are unsecured debt, they are 100% dischargeable in Chapter 7 bankruptcy and can usually be greatly diminished or wiped out completely depending on your secured debt, disposable income, and other factors in your repayment plan.
#2 You’re Late On Your Car Loan and Mortgage
If you are behind on secured debt, such as a car loan or mortgage, bankruptcy can help in two different ways. If you have equity in your home and can afford the mortgage but just fell a bit behind due to temporary circumstances, then Chapter 13 can buy you time to catch up.
For those that are behind on their mortgage with no way to catch up, Chapter 7 can help you get rid of the home and associated debt in order to make a clean break. Talk to a NC bankruptcy attorney about your secured debt to get advice on how to handle it—but bankruptcy may be your answer.
#3 You are Struggling to Pay Medical Bills
Medical bills are another example of unsecured debt that can be wiped out completely in Chapter 7 bankruptcy and should also be eligible for significant (or complete) discharge in Chapter 13. Even those with health insurance may be stuck with medical debt they can’t afford.
If you have ongoing medical costs and your illness isn’t chronic, you may want to wait to deal with debt until your medical issues are complete. It may be best to address your medical debt via bankruptcy rather than draining retirement accounts or maxing out credit cards to pay the bills.
#4 You Have Tried to Work Things Out
Most people don’t jump right to bankruptcy. They try making arrangements with creditors such as catch-up plans, calling the mortgage company to discuss refinancing or rehabilitating the loan, or asking credit card companies to forgive some fees.
But if none of these have worked and you have exhausted other options you can do yourself, then it might be time for bankruptcy. Debt repayment plans are often costlier and less-effective than bankruptcy plans and can actually land you in greater debt.
#5 You’re Being Threatened by Creditors
If your phone rings night and day with calls from debt collectors, you getting letters threatening a lawsuit, or a creditor actually has filed a lawsuit against you, then you need a serious intervention. Being hounded by debt collectors is stressful and no way to live.
Filing bankruptcy shuts down all debt collection efforts. In fact, it’s against the law for creditors to contact you once you file. And any debt lawsuits that have been filed can be stopped. Also, any recent garnishments could be eligible for reversal after you file.
To find out more about North Carolina bankruptcy, contact the Law Offices of John T. Orcutt. We can discuss your finances, debt, and goals and let you know your options. Call +1-919-646-2654 now for an appointment at one of our locations in Raleigh, Durham, Fayetteville, Wilson, Greensboro, Garner or Wilmington.