5 Signs to Consider Bankruptcy
What is Filing for Bankruptcy?
Bankruptcy refers to a legal process in which an individual is declared incapable of paying his/her debts. It can set you free from most debts and give you an opportunity for a fresh beginning. There exist two types of bankruptcy: voluntary bankruptcy, also known as debtors petition, and creditors petition, where someone you are indebted to makes you declare bankruptcy through a court process. However, before filing for bankruptcy there are few pointers to have in mind:
- Seek out advice
- Know what to expect
- Determine your options
Signs You May Need Bankruptcy
During times when you are experiencing enormous debts, and you are not sure on what action to take or what to do to salvage your situation, a petition for bankruptcy may be your go-to resolution. Lawyer Referral Service of Central Texas (LRS) recommends finding a bankruptcy lawyer before moving forward to file. Filing for bankruptcy may be a terrifying proposal to you until you come into terms with the fact that it could be a worthwhile option to relieve you off your debts. In most times, bankruptcy is the only solution out of financial hitches.
Here are additional signs you may consider going bankrupt for.
You Have Started Using a Credit Card for Basic Needs
The moment you have no choice but to use a credit card to purchase basic home items like food, gas, and clothes among others, instead of your debit card, you are possibly in a financial crisis. This should serve as a sign to find an Austin, Texas attorney to help you discuss bankruptcy and decide if that is the route to take.
You could find yourself in a hard-hitting situation with your creditors when they file a court order for wage garnishment. The court may issue an instruction for your employer to directly deduct a specific amount of money from your paycheck and send it to the person or company you owe until your debt is fully settled. When you receive notification for wage garnishment, consider filing bankruptcy.
Spending More than you Earn Regularly
It is possible not to realize this, but if you have reduced on extra expenditure and unnecessary spending yet you still fall in debt at the end of a period multiple times, consider legal advice on filing for bankruptcy. The more you are in debt, the more indebted you become because debts have a tendency of gaining interests. Another scenario is spending all savings on bills instead of what you intended the savings for.
Constant Calls from Creditors
When creditors determine you have delayed providing payment, they most times hire debt collection agencies to follow you on their behalf. When you start receiving phone calls from different collection agencies regularly, it should serve as a sign that you are in a financial fix and should consider legal advice regarding bankruptcy. This may help to hire an attorney who will stop your creditors from phoning you.
Delay on Payment of Bills
You may be late to pay bills such as rent, car bills, your mortgage, or even skip payment of bills because you have run short of money. You might be deceived to think that just because you know your lender, they may be lenient when asking for payment. This is a mistake you should not make. Instead, look for legal advice regarding bankruptcy.
If you identify to any of these signs, consider contacting Austin Lawyer Referral Service to sort your bankruptcy issues. We have highly qualified and experienced lawyers in the Austin, Texas and surrounding areas that can help you. The consultation is free for up to 30 minutes with our bankruptcy lawyers. Give our intake counselors a call at 512-472-8303 or toll-free at 866-303-8303. You may also fill out our referral request form online at www.AustinLRS.com. We are here to help.