When to File Bankruptcy

Being in debt can be overwhelming and often leave people feeling like they don’t have a way out. While there are many options to help manage debt, bankruptcy is often seen as a last resort. However, the bankruptcy process is highly misunderstood. It is actually a tool designed to benefit consumers struggling with debt. It’s important to know when it’s time to consider filing for bankruptcy as it can provide relief for those who are struggling financially.

You’re unable to make minimum payments: If you are unable to make the minimum payments on your bills, it may be time to consider filing for bankruptcy. It can be difficult to get out of a debt cycle when you’re only making minimum payments, as the interest continues to accrue. Bankruptcy can provide the opportunity to clear the debt and start fresh while giving you the chance to rebuild your credit in the future.

Your wages are being garnished: If you’ve fallen behind on payments and your wages are being garnished, it can be a difficult and stressful situation. Bankruptcy can stop wage garnishment and give you the chance to repay your debts over a longer period of time, without the fear of losing your income.

Legal action has been taken against you: If you’ve received a lawsuit or judgment against you and are unable to pay, it’s time to consider bankruptcy. A judgment can result in wage garnishment, seizure of assets, and may even affect your credit score.

You’re facing foreclosure: Falling behind on mortgage payments can be a scary situation. If you’re facing foreclosure, bankruptcy can provide relief by stopping the foreclosure process and giving you the chance to catch up on payments over a longer period of time.

You’re using credit cards to pay for necessities: If you’re using credit cards to pay for necessities like groceries or bills, it’s time to consider bankruptcy. It can be difficult to get out of the debt cycle when you’re relying on credit cards for daily living expenses. Bankruptcy can give you the opportunity to start fresh and manage your finances more effectively in the future.

While filing for bankruptcy can be a difficult decision, it can ultimately provide relief and give you the chance to start fresh. It’s important to consider the circumstances and seek professional advice before making a decision. Consulting with a Houston bankruptcy attorney can help you understand the options available to you and make the right decision for your situation.