If you have tried other ways to get financial relief from your overwhelming debt, bankruptcy may be the solution for you and your family.
Upside Down Payment
When you deduct your assets from your liabilities, including the amount still owed, if the number is negative, you are what is considered upside down in your debt. You owe more than you have. If you can keep up with your payments and still manage your household finances, you will probably get by eventually without filing for bankruptcy. If you are getting further behind and accruing fees and late charges on top of your unmanageable debt, bankruptcy may be a good option for you and your family.
You’ve Tried Other Alternatives
- Negotiating with your creditors: for extending time or removing fees, and you were unsuccessful.
- Debt settlement firms: and were unable to make the lump sum payment to settle the debt.
- Credit counseling and debt management plans: if you were put on a DMP and were unable to keep up with your payments.
- Borrowing money from the bank or family members.
Legal Actions Pending Against You
If you have been notified of legal procedures beginning against you regarding your debt, if you are worried you will lose your home to foreclosure, or your vehicle to reposition, bankruptcy can stop all actions against you from collecting on a debt. Bankruptcy can also stop wage garnishments and liens with the automatic stay.
Income Reduction
If you lost your job or your hours were cut back considerably, and you have no prospects of more money coming in. You may want to file bankruptcy to keep the assets that you have. And keep more of the money you have.
If you are struggling to keep up with your debt, if creditors have threatened legal action, contact a Hidalgo County bankruptcy attorney to find out how you can get financial relief.