If you’re struggling financially, you may be wondering not only if filing bankruptcy is a good option for you and your family, but how you will know when the time is right to seriously consider it.
The American Bankruptcy Institute has provided a useful bankruptcy checklist for consumers and recommends that if three or more of these factors apply to you, you might consider bankruptcy:
- You have had your paycheck or your bank account garnished.
- The majority of your debt is unsecured debt ‐credit card bills, medical bills, etc.
- The amount you owe creditors – beyond your house and car payments – is more than you could pay off in five years.
- You are getting calls from collection agencies.
- You have more than one bill that is more than one month past due.
- You have had lawsuits filed against you by creditors.
- A large portion of your debt includes medical bills that your insurance does not cover.
- Your income taxes have not been paid.
- You do not have many assets.
- You have no – or very little – savings.
- You have had a car or other property repossessed.
- Your home is currently threatened by foreclosure.
There are many misconceptions about the bankruptcy, but the reality is, there are many benefits to filing for bankruptcy, including that you can potentially:
- Stop foreclosure of your home.
- Stop creditors from contacting you.
- Wipe out medical debt.
- Wipe out credit card and other consumer debt.
- Get back a vehicle that has been repossessed.
- Immediately stop wage garnishment.
- Reduce tax debt.
- Even wipe out a second mortgage.
Determining out whether to file bankruptcy can be overwhelming. Contact Koenig│Dunne today and schedule your free consultation with one of our experienced bankruptcy attorneys.