8 Indicators Bankruptcy is Right for You (and how to reduce stress!)
It’s often difficult to know if bankruptcy is right for you. If you have one or more of these indicators, you should give us a call at (480) 422-1850 immediately to schedule a free consult in-person or via telephone.
1. Living paycheck to paycheck
If you’re running out of money before your next paycheck, it may mean that you are servicing too much debt. If you could get rid of your credit cards, your car, or even your house, you may be able to start putting money away in savings and to reduce your stress.
2. Borrowing from Peter to pay Paul?
This is one of the biggest indicators that bankruptcy may be needed. IF you are constantly moving money around in order to pay one creditor or another, then you definitely need to talk to a bankruptcy lawyer so that you can stop the debt merry-go-round and worrying about it all the time.
3. No matter what you do, your debt does not decrease
You’ve been faithfully paying your debt for years and it just seems that you can’t catch up. Your total debt just doesn’t seem to go down at all. You are always making the minimum payment and only paying the interest on your credit cards. If this sounds familiar, bankruptcy will help you out.
4. Constantly receiving threatening phone calls from the banks you owe
When you’re getting multiple calls per day, it’s hard to get away from the stress caused by being in debt. If you haven’t yet, you can always block these calls. There is no need to talk to these people to increase your stress, however, it may be time to talk to a bankruptcy lawyer.
5. Maxed out credit cards
This is related to number 2 and number 3 above. If you can’t make any progress on your credit cards , it means that you are having trouble paying them down. These things have huge interest rates that make it seem impossible to lower their rates.
6. Using retirement money to make payments (Stop this Immediately and see a lawyer!)
If you’ve been getting retirement loans or just pulling money out of your 401K to pay for debt, then you definitely need to talk to us. You are taking what is called an exempt asset, meaning that your creditors can’t go after it, and giving the money to your creditors. DO NOT do this, you may be causing tax liabilities and all kinds of other things. Please call and talk to us or another qualified bankruptcy lawyer before you do that.
7. Your house is drastically underwater
This was much more common a few years ago in the downturn. However, some houses are still drastically underwater and haven’t experienced the appreciation that others have enjoyed the last 3 or 4 years. If this sounds like you, giving the house up may be your best bet of getting rid of that massive worry.
8. Your credit score is horrible
Believe it or not, bankruptcy can help your credit score. IF you want to learn the fastest methods of rebuilding your credit, click here!
So what you need to do is stop worrying about your finances, give us a call and let us do your worrying for you! Still want to learn more? Send us your e-mail and we’ll send you my free e-book!
IF you’re interested in learning how to get rid of your debt fast, click here.