Is it Time to File Personal or Business Bankruptcy?

Bankruptcy? who, me? You might feel guilty at the mere thought of filing for bankruptcy.

However, if you are overextended financially, and the future appears like a black hole of endless debt, this can be a way out of your current jam. The truth is that the legal option of filing for protection with the US bankruptcy courts is the only way some people can resolve their crushing loads of debt.

Of course, you never intended to rack up excessive bills. You might have borrowed money for legitimate reasons: to start a business, go to college, or invest in a home.

Life happened. You got divorced, lost a job that paid you a great salary, or became ill and could no longer work. The end result? A monthly, dangerous game of robbing Peter to pay Paul ensues; you’re covering only the necessary bills and letting the others slide away.

If you’re reading this with a smug grin on your face thinking that this could never happen to you, think again. Most people don’t find themselves in this precarious situation as a result of poor investment choices. It’s most frequently the consequence of those unplanned-for and unanticipated curve balls that life lobs at us.

People who file for bankruptcy are not low-income deadbeats. Five of America’s most respected professionals—people at the top of their game–have filed bankruptcy. After, they used the “clean slate” they were given, and they scraped their way back to the top of their industries.

  • President Donald Trump’s hotels and real estate properties (not the president personally)
  • Respected film producer Francis Ford Coppola
  • American folk writer Samuel L. Clemens (Mark Twain)
  • Disney dynasty founder Walt Disney
  • Radio show icon Larry King

This list demonstrates that mounting debt and uncontrollable circumstances can happen to the sharpest and most well-respected individuals. Indeed, you can hardly call any one of these folks a “deadbeat.”

Here are five key indicators that you are facing a financial crisis that might only be resolved by taking this drastic legal measure.

The debt collectors are phoning you day and night

Inundated by debt collectors phoning you day and night? Not only are they calling you, but they are reaching out to your ex-, your senior citizen parents or grandparents, and your job. The endless calls are affecting those you love or even the employment you need to help pay your way out of the debt, to begin with!

The debt collectors begin their collection campaign by offering to assist you in establishing a repayment plan. However, you cannot afford even the minimum payments they offer. They ramp up their calls with a fury, pestering you day and night.

You block the calls. In return, they call you from a different number. It feels as if you’ll never escape the cycle. Eventually, you agree to a payment plan to get them off the phone. This program buys you a little bit of time, but they will resume their campaign when you miss the first payment.

Have you thought about changing your phone number to dodge these calls? You may be a candidate for bankruptcy.

You receive certified letters in the mail

If your creditors are mailing you certified letters via USPS, they are creating a paper trail. They plan to sue you.

Certified letters require your signature—proof positive to the courts that they made every effort to reach you and give you an opportunity to resolve your debt.

You need a lawyer. Here’s the conundrum—you don’t have the cash to pay one. Truthfully, you cannot afford to go to court over a debt without being represented.

Your debtors have records of your debt, phone call logs of the 10 million times they attempted to notify you, and those certified signature receipts. You amassed the debt, and a judge will order you to pay it.

Do you feel physically ill or fearful every day as you walk out to the mailbox? Bankruptcy might be a solution for you.

Wage garnishment notices have arrived

So, your debtors took you to court, and you lost.

No big deal, you’ll blow off the payments—you can’t afford them. Right?

Sadly, this is not the case.

Your debtors can go back to the courts and ask to invoke a wage garnishment on you. A garnishment is a court order that instructs your employer to withhold a portion of your paycheck until you repay the judgment amount.

Your creditors don’t care if you can’t afford food, rent, or clothing for your children at this point. They just want your payments.

Afraid garnishments are going to render you unable to cover those basic needs? You need to find a bankruptcy lawyer.

Vehicle repossessions

You need your vehicle to travel to work and make money so you can try to recover. However, if you are lagging on your car payments, your lender might repossess your car at any moment.

The repo man could pick up your car outside your home, at your job, or while you’re picking up groceries. Hiding your car is futile—they will scout for it at your past employers, the homes of your relatives, and peek in your garage.

Their bottom line is that you owe money on the vehicle, and you should pay it. Otherwise, you are subject to a repo.

Have you given thought to hiding places for your vehicles? It’s time to consider bankruptcy.

You are in danger of losing your home

There is one most significant indication that you must give bankruptcy serious consideration. You receive eviction notices. Your landlord or mortgage company has said enough to the delinquent payments and will not extend your residency any longer.

Worse yet, because you are being evicted and don’t have any funds saved for a new place, you are having difficulty finding even a tiny apartment.

Are you facing an eviction notice or homelessness in the imminent future? You absolutely need the services of a bankruptcy attorney—the sooner, the better.

Seek a bankruptcy attorney for immediate help

If you see any of these key indicators that you should file for bankruptcy happening, you need the assistance of a bankruptcy law firm. According to Honolulu bankruptcy attorney Rick Abelmann, “bankruptcy is a fresh start.”

Almost the minute you retain an attorney, he or she will go to work for you. They will file for an order called an “automatic stay.” The automatic stay stops creditors from acting. They must cease calling, threating eviction or repossessions, or filing legal notices. Additionally, they may not contact your family, friends,  or employer.

You know that you amassed an enormous load of debt but have lost the ability to repay it. When this happens, bankruptcy might be your last hope for recovering from your situation. Find an attorney to find out if you qualify.

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