How to Know it is Time to File for Bankruptcy

When you are living with debt, the debt can easily become your “new normal.” Sometimes, an individual can live like this for years, not realizing that he or she can receive help with the debt through financial counseling, debt consolidation, or bankruptcy.

If one or more of the following apply to your life, you could be a good candidate for bankruptcy. Talk to an experienced bankruptcy lawyer to receive help and advice with that decision.

Your Debt is Growing Faster than You Can Pay it Down

Debt compounds. That is how creditors earn profits on the money they lend. If you are in a position where your debt grows each month despite making regular payments, you could be better served by bankruptcy than by attempting to repay it. This is especially true if your debt is growing at such a rate that a large, lump payment would not alleviate it.

Not a Day Goes by Without Creditor Collection Attempts

When you can expect calls and letters from your creditors on a daily basis, it might be time for bankruptcy. Filing for bankruptcy enacts the automatic stay, which means all collection attempts must halt.

If the collection attempts do not stop after you file for bankruptcy or if they violate the Fair Debt Collection Practices Act, you could have grounds for a harassment claim against the creditor.

You are Facing Foreclosure on Your Home or Repossession of Your Vehicle

The automatic stay does not just require your creditors to stop their collection attempts; it halts actions like foreclosure on your home and repossession of your car and other personal property. If you are in danger of entering foreclosure and you want to stay in your home, you will need to act quickly. Contact an experienced bankruptcy lawyer to discuss the ideal bankruptcy chapter for your case and file your petition, which will allow you to remain in the home while you and your bankruptcy trustee work out your debt.

You are Ready for a Change

As the old saying goes, “You cannot make somebody change unless he or she wants to change.” Ultimately, you will know when the time is right to file for bankruptcy. When you decide you can no longer live with compounding debt, daily collection calls, and the prospect of losing your home and other possessions, bankruptcy can be what you need to change your life.

Work with an Experienced Rolling Meadows Bankruptcy Lawyer

Filing for bankruptcy is not the end of the world. It can be the end of your debt and if you use it as a chance to learn from your past financial mistakes, it can be the start of a new, debt-free lifestyle. To learn more about filing for bankruptcy and moving through the process, contact our team of experienced bankruptcy lawyers at Newland & Newland, LLP today to set up your initial consultation in our office. We serve clients in the Arlington Heights, Palatine, Rolling Meadows, Libertyville, Mundelein, Buffalo Grove, Schaumburg, Elk Grove, and Itasca areas.

(image courtesy of Niklas Rhose)

  • Newland & Newland LLP, Attorneys, Arlington Heights, IL
  • Lawyer.com