Many people struggle with debt every now and again. While some people are able to turn their financial situations around and climb out of debt, however, others may face ongoing debt issues.
Knowing when to take action and consider filing for bankruptcy, however, can help people avoid complicating their debt situations. And it can help them get the financial fresh start they need as soon as possible.
Strongly Consider Consulting with a Bankruptcy Attorney If…
Sign 1 – You haven’t been able to pay your essential bills for a few months or more.
Money can be tighter for a lot of people during certain months or seasons, such as Christmas or tax season. When a lack of financial resources seems to be the norm, rather than the exception, however, considering bankruptcy can be crucial.
This is because falling behind on essential bill payments – like mortgage payments, vehicle payments and even credit card payments – can have a snowball effect, causing people to be buried in debt in a matter of months.
So, if you have not been able to cover your basic bills for more than two months, now is the time to seek some professional advice before your debt situation gets out of control.
Sign 2 – Your debt is getting bigger but your income isn’t.
This can be a consequence of the above issue or of divorce, unemployment, having a new child or any other circumstance of life. The fact of the matter is that, if your income is not growing at the same rate your debt is, you are going to have a very difficult time turning the situation around without the help of more formal debt relief options, such as bankruptcy.
Sign 3 – You are seriously considering a payday loan or other risky loan options.
As we have noted in a previous blog, payday loans are among the risky options for fast cash. This is because these loans (and similar ones like tax anticipation loans or auto title loans) are extremely expensive for borrowers, and defaults can have serious impacts, such as losing collateral (like homes or cars) or facing astronomical interest rates (that can mean that people end up having to repay double or more than the original loan amount).
So, if you are desperate for cash and a payday loan seems attractive, take this as a warning sign that it’s time to consider bankruptcy (instead of worsening your debt situation).
Sign 4 – You are receiving warnings from creditors regarding wage garnishments, repossessions or lawsuits.
These warnings are no jokes, and the sooner you act to deal with them, the better the resolution can end up being for you. In fact, when facing threats of garnishments, repossessions or lawsuits, filing for bankruptcy may be the only way to stop creditors from moving forward with these actions (due to the automatic stay in bankruptcy) if there is no way debtors are going to be able to repay creditors.
So, don’t ignore warnings from creditors. Take them as a red flag that you need some professional debt relief help.
Contact the Denver Bankruptcy Lawyers at Garcia & Gonzales, P.C.
Are you looking for real relief from serious debt? If so, you can trust the experienced Denver bankruptcy lawyers at Garcia & Gonzales, P.C. to provide you with experienced help, honest answers and the highest quality legal services.
To learn more about your best debt relief options, as well as how we can help you, contact us today by calling (303) 839-8888 or by emailing us using the drop-down contact form at the top of this page.
When you contact us, you will communicate directly with one of our attorneys, not a paralegal or legal assistant. We welcome Spanish-speaking individuals to contact us also – hablamos Español.