The decision to file bankruptcy is a deeply personal one that can have a big impact on your life. If it’s the right decision for you, it could give you the relief you need to get a fresh financial start and to start taking back your life from the stress and anxiety that overwhelming debt has caused you.
There are many reasons why you might consider filing for bankruptcy, depending on your personal circumstances, including your total debts and your income.
Here are 5 of the top reasons why you might consider filing for bankruptcy:
You Have Excessive Credit Card Debt
Credit card debt compounds over time, with high interest rates making it difficult for you to pay down the principal and get out from under the debt. If you qualify for a Chapter 7 bankruptcy, you can discharge all your credit card debt. If you have high credit card debts, bankruptcy can offer you a great deal of relief.
You Have Excessive Medical Bills
If you are injured or become seriously ill, your medical bills can add up fast. Similar to credit card debt, medical bills are almost always unsecured debts. If you qualify for a Chapter 7 bankruptcy, you can eliminate these debts and get relief.
You are Behind on Your Mortgage
If you lose your job or become mired in debt, you may fall behind on your mortgage. Bankruptcy may be able to save your house and help you to catch up on missed payments. A Chapter 13 bankruptcy filing can reorganize your debts and offer you a payment plan, allowing you to include past due mortgage payments. Of course, you will have to pay on the past due amount while also paying your current mortgage payment.
You are Being Harassed by Creditors
When you start to get in over your head in debt, it can feel like you are being hounded by creditors. You may start to dread answering the phone or opening your mail. When you file for bankruptcy, your creditors are prohibited from contacting you about your debts. All the letters and phone calls must stop. If they continue to contact you after you file, you may be able to file legal action against them.
You Have Exhausted Your Options
Bankruptcy is often a measure of last resort for many people. Many try to work out a repayment plan with their credit card companies and mortgage companies but either have no success or don’t find enough relief to catch up on their debts. If you have already tried to work out payment arrangements yourself and are still struggling to pay your debts each month — or maybe are accumulating even more debt in the process — then bankruptcy may be right for you.
North Carolina Bankruptcy Lawyer
Find out how you may be able to get the debt relief you need and get back on the road to financial recovery!
*Certain debts may be considered non-dischargeable if the creditor takes action in your case. Those debts include debts obtained by fraud, embezzlement, and willful and malicious conduct. These situations are very rare and are dependant upon your specific facts and circumstances. Your bankruptcy attorney will discuss whether this may apply in your case with you at your free consultation.