Signs That You Are Flirting With Financial Ruin

Bankruptcy is a legal procedure to help those who are struggling with debt address it in a manner appropriate for their financial means. Once a Chapter 7 or Chapter 13 bankruptcy petition is filed, the debtor is protected from collection efforts like: wage and bank account garnishment, home foreclosure, and vehicle repossession. However, there are drawbacks. Such as, asset exemptions limits and remaining on a credit report for an extended period. That is why, if you are struggling with debt, you should wait to consider bankruptcy until your financial situation becomes serious.

The following are signs that your situation is headed in that direction.

• You are consistently late on monthly payments- If this is the case, you are probably being hit with late fees and negative credit reporting. If you can’t catch up on your payments, your creditors may file a lawsuit against you or repossess financed property. 
  

• You frequently pay overdraft fees- When you spend more money than is in your account, your bank will likely charge you a fee. The fee will vary on the bank and number of overdraft occurrences. 
  

• You keep opening new credit cards- It can be tempting to use credit to pay for expenses you otherwise can’t afford. Juggling multiple credit cards and their interest fees creates a fast-track to insurmountable debt. 
  

• You’ve lost track of how much debt you have- It can be hard to keep track of debt when you have a lot of it, and interest accrual is causing it to constantly go up. This is a sign that your debt is getting out of control. 
  

• Your phone is constantly ringing- One of the steps creditors will take to collect on your debt is annoying creditor calls. Know that once you retain a bankruptcy attorney and inform your creditors, they are no longer allowed to call you. 
  

• Financial issues are seeping into your personal relationships- Whether debt means downgrading your family lifestyle or is causing arguments with your partner, financial strain rarely causes a positive effect in relationships. 
  

• You have received a summons- A summons means one or more of your creditors has filed a lawsuit against you. Failing to respond or come up with a valid defense results in your creditor getting a judgment against you. The creditor can use that judgment to get an order to garnish your wages, bank account,, and other income. 
  

How Much Debt is Too Much Debt?

You should keep in mind the costs of filing bankruptcy when deciding if you have enough debt to file bankruptcy. The court’s filing fee for a Chapter 7 bankruptcy is $335, and for a Chapter 13 is $310. Attorney’s fees for both types of cases are typically much higher than the filing fee, especially in a Chapter 13. Therefore, you will need to have at least a few thousand dollars in dischargeable debt for the benefits to outweigh the costs. You also will be restricted from filing for certain periods of time after each chapter. Filing on a small amount of debt could disqualify you from bankruptcy for up to 8 years. 

How Does Excessive Debt Impact Your Credit Score?

Excessive debt can impact your debt in a number of ways. Making payments late and failing them altogether will quickly decrease your credit score. Having an asset repossessed will have an even worse effect. Increasing your credit limits may have a positive impact on your score, but using a high percentage of your available credit will be negative. 

At What Point Should You Consider Talking To An Attorney?

If you meet one or more of the situations listed above, you should at least have a consultation with an experienced Las Vegas bankruptcy attorney. Additionally, our firm offers phone consultations to more easily fit into your schedule and from the privacy of your own home. Also, our Nevada Debt Relief Attorney can let you know if filing in the future is more opportune, give you tips to strategically handle your finances until then, and get back in contact with you when the time comes.

Once you retain an attorney, you can inform your creditors and they are no longer allowed to contact you. Some bankruptcy attorneys will let you retain for little to no money down. (Including our firm). Therefore, start taking advantage of the benefits of bankruptcy today by calling for your free consultation! Contact Us today at (702) 370-0155.