Are you considering filing for a Chapter 7 or Chapter 13 bankruptcy? It’s a lofty decision that requires a tremendous amount of forethought. If you’re not sure if it’s the right thing to do, these signs may make it a little easier to decide.
You’re only making the minimum payments. If your budget doesn’t allow you to make more than the minimum, it’s going to take several years to pay off your balance and chances are the majority of that will be interest. If it’s going to take more than five years to pay off, bankruptcy may be a wise decision.
Your home is “underwater”. A home that’s “underwater” means it is worth less than your mortgage. In such a scenario, you may be forced to do a short sale or face foreclosure just to be able to start fresh.
Creditors are hounding you. Are you afraid to pick up the phone or check your mail because of debt harassment? There are certain rights you have and things that debt collectors cannot legally do. Always reach out to debt collectors and do not simply ignore the requests. If it’s to the point where you have to choose between paying bills or putting food on the table, bankruptcy may be the way out. It won’t be an easy one, but it may allow you some peace of mind.
This information is provided by Miami bankruptcy lawyer Alonso, Perez & Santos, LLP. Our areas of practice include bankruptcy, insurance litigation, debt harassment, credit card defense, foreclosure defense, immigration law, condominium law, business start-ups, and more. Call 305-676-7545 to speak with a Miami insurance attorney or bankruptcy attorney and receive a free consultation. We look forward to working with you.
This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.