Experiencing debts that a person is having difficulty paying may require help from a professional bankruptcy lawyer residents depend on for representation and counsel. Deciding to file for bankruptcy should always be taken seriously, and often, it can become challenging to ultimately determine that this option is the best way to move forward. A situation that leaves a person unable to cover their expenses and even day-to-day needs can be stressful and come with a significant amount of shame. It’s important to note that not every person is filing for bankruptcy because they have been fiscally irresponsible. Financial challenges can result from unexpected hardships like job loss, illness, or injuries. As a result, it can be easy for a person to find that they are over their head. While choosing bankruptcy can be challenging to come to terms with, many debtors can finally experience relief as a result. The Law Offices of Ronald I. Chorches share signs that may indicate it’s time to consider bankruptcy as an option:
#1. Using Credit Cards to Cover Essentials
While some people may use their credit cards to cover daily essentials and pay them off each month, others may use their credit cards because they have no money in the bank to cover those essentials. Using a credit card to buy things like gas or groceries can be incredibly dangerous, causing debts to grow, especially when debtors do not pay off the balance each month.
#2. Being Unable to Make Payments on Debts
For some who are financially in over their heads, over time, it may become difficult to cover monthly financial commitments. If a person is only able to cover minimum payments or, worse, unable to make payments altogether, it can be nearly impossible for a debtor to dig themselves out and ultimately catch up on these debts. Because of this, it may be necessary to consider options involving either debt consolidation plans or bankruptcy to regain control of these debts.
#3. The Creditors Are Calling
When a debtor has not paid or made their minimum payments, creditors may call and attempt to settle these debts. When a person cannot pay, these calls can be constant and challenging to contend with, especially when a person does not have the means to settle these debts. Calls from creditors can create shame and even cause a significant amount of stress and anxiety for a person. Sometimes, the only solution is to consider bankruptcy which can offer relief. When a person files, the automatic stay takes effect, meaning creditors must halt their attempts to settle debts. Through bankruptcy, debtors can have their debts forgiven or restructured depending upon the type of bankruptcy filed.
#4. You Cannot Consolidate Debt Through a Loan
One potential solution for managing debts is consolidating debts with a loan. While this can be a way to regain control of debts, some people may need better credit, thus unable to qualify for these loans. Unfortunately, should this occur, the only option may be to file for bankruptcy to experience relief from these debts. While many worry about the impact filing for bankruptcy may have on their credit, know that for many who are unable to pay their bills, it’s likely that their credit has already taken a hit. While bankruptcy will impact credit scores, keep in mind that it’s possible to rebuild credit after bankruptcy.
When filing for bankruptcy, debtors will have several needs. Because of this, it will be essential to speak with The Law Offices of Ronald l. Chorches, a Bridgeport, CT bankruptcy lawyer that those contending with debts can rely on.