Many people suffering financial hardship question whether their situation is bad enough to require bankruptcy. If you are unsure whether you should file for bankruptcy, let us give you one solid piece of advice: speak with a bankruptcy attorney. Only a bankruptcy attorney can help you understand your debt relief options. Advice from family members and friends can be flawed, misinformed, or plainly wrong. Unfortunately, many people endure months of creditor harassment because they substitute sound advice from a bankruptcy attorney with myths perpetuated by friends and family members.
To help you identify the signs that bankruptcy might be right for you, Sacramento Law Group has compiled the following list. If any of these signs reflect your current situation we strongly encourage you to visit www.santarosabankruptcy.us and contact our bankruptcy attorney.
1) You are carrying a high credit card balance
Credit cards can be useful for financing your lifestyle on a short-term basis. However, it is easy to pay the minimum balance for a few months only to have the total amount snowball. Once your credit card balance surpasses a certain threshold paying off the entire balance may be unrealistic. If you are carrying a high credit card balance and cannot afford to pay it off, consider speaking with a bankruptcy attorney. Credit card debt is generally unsecured and therefore dischargeable in chapter 7 bankruptcy. Once your chapter 7 bankruptcy is concluded your credit card debt will be eliminated.
2) Overwhelming Unsecured Debt
Medical treatment is often the culprit of overwhelming unsecured debt. Divorce and business-related debt is also a leading cause of tremendous unsecured debt. Regardless of the reason, when you have a large amount of unsecured debt that is difficult to repay you should evaluate your bankruptcy options. Chapter 7 bankruptcy can eliminate your unsecured debt and give you a fresh start.
3) Borrowing From Your Retirement
Do not borrow from your retirement accounts to repay dischargeable debts. Hardly anyone saves enough for retirement, so taking money from retirement accounts that you can protect in bankruptcy to repay dischargeable debts is a bad idea. Instead of taking years to repay your dischargeable debts use your time and money to save for retirement.
4) Foreclosure / Repossession
If you are about to lose your home to foreclosure or your car to repossession, call a bankruptcy attorney. Once your bankruptcy petition is filed with the court foreclosure and repossession activities must stop. For example, if you file for bankruptcy today the foreclosure sale scheduled for tomorrow cannot continue. Alternatively, if you file for bankruptcy today your car cannot be repossessed next week. In essence, the filing of a bankruptcy petition acts as an injunction against many collection activities, including foreclosure and repossession. This automatic injunction is known as the “automatic stay” in bankruptcy.
A bankruptcy attorney may be able to save your home from foreclosure by filing chapter 13 bankruptcy. In chapter 13 bankruptcy you can keep your home while you catch-up on late mortgage payments. If you are facing foreclosure don’t wait until the last minute to contact a chapter 13 bankruptcy attorney.
5) Creditor Harassment
If creditors are calling you all day, sending you threatening letters, or otherwise harassing you about certain debts, call our bankruptcy attorney in Santa Rosa to schedule a free consultation. Filing bankruptcy will stop these forms of creditor harassment. In fact, filing bankruptcy will stop all creditors from making collection calls, sending demand letters, or making any collection-related communications. This injunction against collection activities is automatic once you file for bankruptcy.