856-282-5505 — [email protected]

HOW YOU KNOW WHEN IT’S TIME TO FILE FOR BANKRUPTCY

Debt has become a way of life for many.  And even though Bankruptcy has become much more common and acceptable than it was just 10 years ago, it still intimidates many Americans who could most benefit from the process.  A telltale signal that bankruptcy may be right for you is when what you owe exceeds what you can pay.  It’s really that simple.  Some other signs that it may be time to file for bankruptcy:

YOU ARE BEING SUED

When a debt collector fails to receive payment or can not reach you to set up some sort of payment arrangement, then they just might decide to file a lawsuit.  If they win that lawsuit, then the debt grows even larger with the added expenses of court costs and attorney fees.  However, filing a bankruptcy case, the court will issue an automatic stay against all your creditors…stopping them from all collection efforts immediately and stopping all lawsuits.

WAGE GARNISHMENT

After the creditor wins the lawsuit above, they will attempt to collect what is owed to them.  In New Jersey, creditors after obtaining a judgement may attempt to freeze your bank account or garnish your wages.  A wage garnishment is a court order directing your employer to withhold money from each paycheck and give it to the creditor until the judgement is paid in full.  Once again if you file bankruptcy, the automatic stay would prevent the wage garnishment from being enforced.  However, the automatic stay will not stop garnishments if they are for domestic support obligations such as child support or alimony.

UNABLE TO PAY YOUR BILLS

Unexpected occurrences, such as losing your job or sudden, unforeseeable medical bills have the potential to leave you in serious financial distress.  Unforeseen circumstances like these lead to using credit as a supplement to earned wages.  Using credit to pay for daily living expenses and one’s monthly bills can lead to big problems very quickly.  If your debt is snowballing each month and just growing bigger and bigger, then it may be time to file for bankruptcy.

HOME IS AT RISK OF FORECLOSURE

If your home is at risk of foreclosure, filing bankruptcy will allow you time to get caught up on late mortgage payments and keep your home.  It also allows time to investigate other options which may be available to sell your home and maintain some of its equity.  Bankruptcy is the only legal means of stopping a foreclosure auction.

 

WHEN IT’S TIME TO FILE BANKRUPTCY – PIKUNIS LAW IS HERE TO HELP

It may be possible to dig your way out of debt with strict budgeting, hard work, patience and a lot of sacrifice.  It’s an important decision, so take your time and assess your total situation.  Be honest with yourself.  Know what you realistically owe and what you can realistically pay out.  Then ask yourself the following questions:

  • Is the phone constantly ringing from collection calls?
  • Are you only making the minimum credit card payments?
  • Are you considering debt consolidation?
  • Are you scared to give your finances an honest evaluation?
  • Are you even sure how much debt you actually have?

Please don’t be one of the many people that wish they would have filed for bankruptcy sooner.  Call Pikunis Law at (856) 282-5505 to discuss your options and start your journey towards a financial fresh start.

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