How to Know When It’s Time to File for Bankruptcy
Bankruptcy is a legal proceeding that allows you to get rid of your debt. It is handled in bankruptcy court. This allows you to get a fresh financial start. However, it is not a decision you should take lightly. A Philadelphia criminal attorney recommends you file for bankruptcy if you have the following issues.
You Cannot Pay for Basic Expenses
If you are struggling financially, you may find yourself deciding what you should pay and what can wait. This is not a good position to be in, so you may want to file for bankruptcy. Your debt is likely making it impossible to pay for your expenses.
You Only Make the Minimum Payments
You may think you are doing okay financially if you are able to make the minimum payments each month. However, if you only make the minimum payments, then you will be in debt for a long time. Getting rid of this debt will improve your financial future.
Collection Agencies Have Called You
A debt will be turned over to a collection agency after you have missed a few payments. You can ignore the collection agency, but the debt will not go away. The best way to stop the harassing phone calls is to take care of the debt. If you cannot handle it on your own, then you need to speak with a bankruptcy attorney.
You Are Using Your Credit Cards to Pay for Your Basic Expenses
It is fine to use your credit card as long as you can pay the balance each month. However, you shouldn’t have to use your credit card to pay for your basic expenses. This is a sign you are not doing well financially. Bankruptcy is the best option.
Your Wages Are Being Garnished
Companies will do everything they can to get money from you. That is why they may start garnishing your wages. It is estimated 10 percent of people have to get their wages garnished. Wage garnishment can put a strain on your already strained finances. A defense attorney in Philadelphia recommends you file for bankruptcy.
You Don’t Have Any Savings
You need to have a savings account because you never know what is going to happen. If you have depleted your savings to pay off your debt, then you need to talk to a bankruptcy attorney. They can help you protect your financial future.