Warning Signs You May Be Headed For Bankruptcy
How Do You Know When It’s Time To File For Bankruptcy?
Our Las Vegas Bankruptcy Attorneys and staff are experienced in the many indicators that a person in Nevada may be nearing the point of needing to file bankruptcy. The warning signs to a future bankruptcy may not be all that clear, however, there are like traits of those that declare bankruptcy in Nevada. Read on to learn more about what to look for when people are considering bankruptcy. Also learn, the signs to look for in friends and family members that may be struggling financially.
Debt is such a common part of the American experience that it’s hard to know when your debt situation has gotten out of control. You also may feel uncomfortable discussing your finances with anyone other than a professional. Bankruptcy is an effective method of debt relief in Las Vegas for those who need it, but it doesn’t come without its drawbacks. There are also time limits you must wait between bankruptcy filings, so filing when you don’t really need it could take that opportunity away in a future emergency situation. Here are some signs that you may want to consider consulting with a Las Vegas bankruptcy attorney about your options.
Creditor Harrasment: Your Phone Is Constantly Ringing Due To Creditor Calls
Creditor calls are annoying, and can also be embarrassing. There are steps you can take to stop your creditors from calling, but this can be tedious if you have several creditors. Your creditors also must stop contacting you as soon as you inform them that you have retained a bankruptcy attorney. The Automatic Stay provides further protection from the moment your petition is filed. Wage garnishments, foreclosures, repossessions, utility shutoffs, and more will all stop once the Automatic Stay is activated. Once your debts are discharged in bankruptcy, your creditors will have no reason to continue contacting you.
You Receive a Summons From One Or More Of Your Creditors
If you receive a summons from one of your creditors, it means they are suing you for missing too many payments on your debt to them. You must either present a defense for why you don’t owe the debt that your creditor alleges, or they will receive a judgment against you. If you fail to respond or appear in court, your creditor will automatically win, or receive a default judgment. Having a judgment against you will have a negative impact on your credit. Your creditor can also use this judgment to request a writ of garnishment from the court. It’s better to file bankruptcy before the garnishment starts to avoid paying a debt you will discharge in bankruptcy anyway.
Your Wages Are Being Garnished
Unless your wages are garnished for child support reasons, a wage garnishment is usually a sign of a serious debt problem. After receiving a judgment against you, most creditors can garnish your wages at a rate between 15-25 percent. Your creditors can also tack on legal fees and interest to your balance, making the garnishment last even longer. Once in place, the lowest the court can reduce the garnishment to is 15 percent. For most people, this creates a compounding debt problem from which it is nearly impossible to escape. Bankruptcy is one of the few ways to stop a wage garnishment, besides paying off your balance. Only one creditor can garnish your wages at a time, but they can line up so that another garnishment begins as soon as your first ends.
You Have a Deficiency Balance From a Foreclosure or Repossession
After a vehicle repossession or a home foreclosure, you may still be left with a debt for the asset, depending on how much it sold for at auction. This means you will continue paying on your house or car, after it has already been taken from you. This can make it extremely difficult to afford a new car or housing. However, depending on the chapter you choose, discharging a deficiency balance in bankruptcy can have a negative impact on any co-signers on your loans. You should consult a bankruptcy attorney in Las Vegas about your options before filing due to a deficiency balance.
You Consistently Rely On Credit Cards Each Month, & Have a Growing Balance
Juggling debt payments may end up in you using credit cards each month, whether it’s for ordinary expenses or emergency situations. The good news is that credit card debt is typically unsecured, making it dischargeable in both chapters of bankruptcy. If clearing away your credit card debt will actually help you rely on credit cards less, bankruptcy may be a good option for you. Chapter 7 discharges credit card debts without any repayment, and credit cards can be discharged with only partial repayment in Chapter 13.
You Have Delayed Necessities Like Vehicle Maintenance & Medical Care Due To Financial Constraints
Putting off these types of expenses can result in greater cost to you in the long run. It is also a sign that you need to reassess your financial situation. Filing bankruptcy may be a good chance to get rid of expenses you can no longer afford, so you can prepare to budget for these necessities.
You Experienced An Emergency That Left You With Insurmountable Medical Bills
Medical debt is the number one cause of bankruptcy in the United States. Medical emergencies can also cause you to miss considerable amounts of time from work, which only adds to your debts stemming from that issue. It may be wise to file bankruptcy rather than waste money trying to pay off these debts first. One thing to keep in mind is that some doctors may decline to continue treating you if you discharge their debts in a Chapter 7. You may either use Chapter 13, or pay your balance despite your discharged legal obligation to do so. Emergency rooms can never turn you away due to bankruptcy.
You Are Considering a Title Or Registration Loan
Encumbering your vehicle with additional debt could jeopardize your method of transportation. You should hesitate before taking out either of these types of loans- especially a title loan, as these can’t be discharged in bankruptcy. These debts can dig you further in a hole of debt if you aren’t able to repay them based on the strict terms of your agreement. If you have significant other debts, filing bankruptcy may be preferable to encumbering your vehicle.
Contact Our Las Vegas Bankruptcy Attorneys For Help
Just because one of these situations doesn’t match yours doesn’t mean that bankruptcy won’t be able to help you with your financial issues. To learn more about the benefits of bankruptcy, as well as the drawbacks, schedule your free consultation with one of our experienced bankruptcy lawyers today. This is your opportunity to ask any questions you may have about bankruptcy, as well as receive your quote for legal representation. We offer payment plans that work with almost anyone’s budget- you may even qualify for a post-filing payment plan for Zero Dollars Down. Let our Las Vegas Bankruptcy Attorneys take care of the most arduous parts of your bankruptcy filing, and rest assured, knowing you are on the path to a clean financial slate. Get started today by calling or using our online form to schedule your free consultation.
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