Millions of people struggle financially, but missing one or more payments does not mean you should visit a bankruptcy attorney. Most people are able to catch up after missing a payment or even two, but certain factors may require a consultation with an expert to discuss the possibility of filing bankruptcy. If you are dealing with the following, consider visiting an attorney to learn more about bankruptcy.
Loss of Income
You may lose your income due to the termination of employment or an unexpected illness that will not allow you to work. Missing one or more minimum payments is not the end of the world but if you have lost your income, you will be unable to make payments for a longer period of time.
If your loss of income has caused you to miss your minimum payments for numerous months and you are now accruing late fees and high-interest charges, you may benefit from filing bankruptcy.
If you have lost your income due to conditions that you cannot control, chapter 7 bankruptcy is your best option for removing these debts.
Possibility of Losing your Home
A loss of income can cause you to miss a few mortgage payments, as well. Unfortunately, catching up on missed mortgage payments is not only overwhelming and expensive but it is almost impossible for many people. If you are in danger of losing your home, visit a bankruptcy attorney immediately.
If possible, consider filing chapter 13 bankruptcy, which allows you to keep your assets after agreeing to pay your bad debts. After a period of 3 to 5 years of paying these delinquent debts, the bankruptcy is discharged. Of course, you will need to continue paying your mortgage payments after the bankruptcy is discharged to ensure you do not have any future possibilities of foreclosure.
Frozen Accounts/Garnished Wages
If a debt collector has sued you for the repayment of a bad debt, your current wages may be garnished. In certain states, these lawsuits may allow the debtors to freeze your bank account or garnish your wages. Freezing a bank account or garnishing your wages will require the debtors to get a court order, but it is a realistic and frightening possibility.
Filing bankruptcy is one way to stop the garnishment, but you will still be responsible for handling the bad debts. If you are currently dealing with a frozen bank account or wage garnishment, you should consider filing bankruptcy.
Losing control of your finances can be stressful, but bankruptcy can offer you some relief. To learn more, contact a bankruptcy attorney from Collins & Arnove in the Frisco, TX area at 972-516-4255.
Collins & Arnove | Bankruptcy Attorney Frisco TX | 972-516-4255