Am I Ready to File a Florida Bankruptcy Case to Get Rid of Debt?
What are the signs that it is time to file for bankruptcy relief? For each person, the signs might be different. However, we have listed some of the common signs below that could indicate you need to file a Chapter 7 or Chapter 13 bankruptcy case before your financial situation worsens.
Signs You Need to File a Bankruptcy Case
- Sign Number 1: You cannot afford to pay your bills each month.
If you are struggling month-after-month to pay bills, this is a sign that your income is stretched too thin. As you continue to struggle to pay your living expenses and bills, your financial situation continues to grow bleaker. When you prepare a budget and your expenses and debts are greater than your income, it is time to talk to a Miami Lakes bankruptcy lawyer.
- Sign Number 2: You receive a debt collection lawsuit.
If you are in jeopardy of being sued for a debt or you receive a debt collection lawsuit, filing a bankruptcy case could get rid of the debt and the lawsuit. It is never a good idea to ignore a lawsuit. If you do not respond or you do not have a defense to the lawsuit, a judgment might be entered against you for the debt, interest, court costs, and attorney fees. The creditor can then take action to collect or enforce the judgment.
- Sign Number 3: You are facing a foreclosure action.
If you are in danger of losing your home, you need to contact our Miami Lakes bankruptcy attorney to discuss options for saving your home. Filing a Chapter 13 bankruptcy case stops foreclosure and allows you to catch up the past due payments over a three to five-month bankruptcy plan. In addition, you can get rid of unsecured debt for pennies on the dollar, potentially lower the interest rate and amount you owe on your car loan, and stop all collection efforts by creditors and debt collectors.
- Sign Number 4: You are using credit cards to pay living expenses and other debts.
A sign that you need to consider filing a bankruptcy case is the use of credit cards to pay living expenses. You should be able to pay your basic living expenses, such as utilities, gas, food, and medications. Furthermore, you should not need to use one credit card to pay another credit card, your house payment, or your vehicle payment. If you begin using your credit cards to pay other debts, it is past time to consult a South Florida bankruptcy law firm.
- Sign Number 5: You are borrowing from or withdrawing retirement funds or considering a mortgage/equity line on your home.
It is not always a sign that you need to file a Chapter 7 or Chapter 13 bankruptcy case if you borrow from your retirement funds or get an equity line on your home. Many people do this to pay unexpected expenses or make a large purchase or repair. However, if you are in substantial debt or you repeatedly use retirement funds to pay debts, you may need to consider filing for bankruptcy relief. Continuing to use retirement funds or using the equity in your home to pay bills jeopardizes your future and your home.
- Sign Number 6: A temporary loss of income because permanent or long-term.
You might be able to make ends meet if the decrease in income is temporary. However, if the decrease in your income is expected to last for a substantial period or you are unable to return to work permanently, you may need to file a bankruptcy case to get rid of debt so that you can afford to make ends meet with less income.
Our Florida Bankruptcy Law Firm Can Help
Do any of the above signs apply in your situation? If so, our Miami Lakes bankruptcy attorneys are here to help. Contact Adams Law, P.A. by calling (305) 615-2905, email our office, or use the contact form on our website to schedule a free consultation with a South Florida bankruptcy lawyer.
