When Should You File for Bankruptcy?

Filing for bankruptcy is a serious financial decision to make. It is important that those considering filing are sure that bankruptcy is the best option available. Your very first step should be to find a Licensed Insolvency Trustee to help evaluate your current situation and discuss all possible options. Below are a few big reasons to file for bankruptcy.

IF YOU ARE UNEMPLOYED

If you do not have a current source of income but are with a lot of debt, perhaps bankruptcy will help by placing you at “zero” vs. “in the negative” once you do get a job.

IF YOUR WAGES ARE BEING GARNISHED

Believe it or not, you can actually stop your wages from being garnished by creditors once you file for bankruptcy. This does not include child support or alimony.

THERE ARE PENDING LAWSUITS AGAINST YOU FROM CREDITOR

When you file for bankruptcy, all pending lawsuits against you are put to a stop by the courts.

IF YOU ARE BEHIND ON MORTGAGE PAYMENTS

It is possible that you are late on your mortgage payments because you are busy paying your creditors. If you can’t bring those payments up to date you will face a foreclosure. By filing for bankruptcy you can eliminate those payments to creditors and make those payments on your mortgage, saving your home from foreclosure.

IF YOU ARE TIRED OF BEING HARASSED BY CREDITORS

The law states that all creditors must cease any method of collecting from the debtor once bankruptcy is declared. This includes those harassing phone calls.