When Bankruptcy Can Help

: Reese Baker & Associates

  Filed under: bankruptcy

If you have already tried other alternatives to get a handle on your debt and failed bankruptcy can help. Sometimes working with creditors to reduce the fees or penalties can be effective, but if the lenders are inflexible or you are still unable to make the payments, it might be time to consider filing for bankruptcy.

Your Behind on Your Payments

If you owe more than you make, you are considered “upside down.” Even if you sold everything you owed, it would still not be enough to pay all of your debt. If you are getting further and further behind in making your payments and accruing fees and penalties making it even more challenging to pay the debt.

Legal Action Against You

If you have been notified of pending legal proceedings either from your mortgage lender or vehicle finance company, when you file for bankruptcy the automatic stay prevents all collection attempts, including legal actions from moving forward.

If an unsecured lender, like a credit card company, threatens to file a lawsuit against you and you are worried your wages would be garnished, the automatic stay will stop these actions.

If your creditors are taking legal action against you, chances are you have run out of options to get back on track. The automatic stay gives you time to figure out how you are going to get control of your debt. Your lawyer can help you decide if Chapter 7, the elimination bankruptcy or Chapter 13, the repayment and reorganization bankruptcy will be a better fit.
Contact a McAllen bankruptcy attorney to discuss what options you may have to get a fresh start and start over with your finances.