The last thing most of us want to think about is filing for bankruptcy. Making the decision to file bankruptcy is deeply personal and can have a serious impact on your life. However, if this is the right option for you, it could provide you with the relief you need to get a fresh financial start and reduce stress and anxiety caused by overwhelming debt.
Below are five reasons why you might consider filing bankruptcy.
You Have Excessive Credit Card Debt
Credit card debt can compound over time. The high interest rates can make it difficult for you to reduce the principal on your credit cards and get you out of debt. If you qualify for bankruptcy (in most cases Chapter 7 Bankruptcy), you may be able to discharge the credit card debt you owe and obtain the relief you need to get a fresh financial start.
You Have Excessive Medical Bills
After a serious accident or illness, your medical bills can quickly pile up and take over your financial livelihood. Like credit card debt, medical bills are unsecured debts that may qualify for a discharge under certain types of bankruptcy. For example, if you qualify to file a Chapter 7 bankruptcy, your unsecured medical bills may be discharged.
You Need to Prevent a Foreclosure Of Your Home
If you lose your job or become overwhelmed in debt, you can also easily fall behind on your mortgage and risk losing your house. In such situations, bankruptcy may be able to save your home and help you catching up on missed mortgage payments. For instance, a Chapter 13 bankruptcy filing can reorganize your debts and provide you with a payment plan option that will allow you to include past due mortgage payments.
Stop Harassing Phone Calls By Creditors
When you get caught up in debt, it may feel like you are constantly being harassed by creditors. Answering phone calls or opening the mail may become dreadful. Filing bankruptcy may prohibit creditors from contacting you about your debts. Creditors may be forced to stop phone calls and letters.
You Have Exhausted Your Options
Bankruptcy may be best if you have exhausted all of your options. It is often a measure of last resort. If you have already attempted to work out a repayment plan with your creditors but have had no success or are unable to find relief to catch up on your debt, bankruptcy may be your best option.
Regardless of why you choose to file bankruptcy, it is important to seek the assistance of an experienced bankruptcy attorney to help you through the process and ensure that you protect your legal rights and obtain the relief you need.
Call an Experienced Fresno Bankruptcy Attorney
Have you already filed for bankruptcy or are planning to file for bankruptcy? If so, it may be in your best interest to immediately consult with an experienced bankruptcy attorney.