Unfortunately, some people wait far too long to file and that can mean their bankruptcy is more complicated, expensive, and will take longer to be resolved. To help you understand how to better time your chapter 7 bankruptcy filing, read about some major signs that should have you making an appointment with a bankruptcy lawyer for a consultation soon.
Threatened With the Loss of a Home or Vehicle
Losing property like a home or car can be devastating. Dealing with a foreclosure is easier if you file bankruptcy before the lender takes action. Once you file, the automatic stay will prevent the lender from taking further action but that is only a temporary measure. If you are behind on your mortgage payments, filing bankruptcy might allow you some time to get your payments up to date. If you are currently trying to pay both your mortgage and your credit card bills, a filing can allow you to focus on your mortgage only. Once you file, no more credit card, medical debt, or personal loans need to be paid. The same scenario can follow when it comes to your vehicle. File for bankruptcy to prevent repossession, get your payments up-to-date, then ask your bankruptcy lawyer about performing an auto loan reaffirmation so you can keep your vehicle after bankruptcy.
Your Budget Is in Trouble
When your income is far less than your debt obligations, you must either increase it or take more aggressive actions. Many people have little success with increasing their income and that can mean paying bills is a struggle. If you have credit cards, you may find yourself paying for food, fuel, housing, and other needs using this avenue. When things get even worse, you will have to juggle some bills by putting them off and you might even use one credit card to pay off another credit card. Take a look at how much of your budget is going towards paying just your credit card debt. Many people will never pay off that debt and the interest, fees, and penalties are too punitive to manage. That might be a sign you need to speak to a bankruptcy lawyer.
When any of the above happens to you, you may need to take quick action to prevent creditors from filing suit against you, placing liens on your property, and garnishing your wages. Contact a bankruptcy attorney for more information.