Knowing When to File for Bankruptcy Protection
November 21, 2019 By: Carrie Weir
Choosing the Appropriate Time Makes a Big Difference
The bankruptcy laws were enacted to give people an opportunity for a fresh start. It can happen to anyone—medical bills pile up, you lose your job or go through a divorce. A Chapter 7 or Chapter 13 petition can help get you on the right track. Unfortunately, we typically see that people wait too long to file, making things significantly worse. That can happen for a number of reasons:
- There’s a perception that bankruptcy is an indication that you’ve failed—it’s not. Some of the most successful people in history have filed for bankruptcy protection, including Henry Ford, Walt Disney and Abraham Lincoln.
- Too many people engage in “magical thinking,” the unfounded belief that “things will get better.” Often, the best way around that is to get an objective assessment from an unbiased third party, such as an experienced bankruptcy attorney.
Telltale Signs You Should Meet with a Bankruptcy Lawyer
The key, of course, is knowing when you’re past the point of no return. Here are some things to watch out for:
- You have at least one credit card that’s maxed out, and you’re only making monthly interest payments. That’s like just throwing money into the air.
- You’re making car or mortgage payments late every month, getting hit with a late fee.
- You regularly take cash advances from credit cards, or you have any payday loans. Most people engage in these types of activities thinking it will buy them the time they need to get caught up, but it almost never works—the hole just gets deeper.
- You are paying for groceries, gas or utilities with a credit card. If you can’t pay for basic necessities with your earnings, it’s time to consult a bankruptcy attorney.
- You’ve overdrawn your checking account more than once, unless it’s a mathematical error or an automatic payment you forgot.
Contact Heath, TX Bankruptcy Attorney Carrie Weir
I offer a free initial consultation to all potential bankruptcy clients. Contact my office by e-mail or call me at 972-772-3083 for a private meeting. With offices in Rockwall, Texas, I represent clients in Heath, Greenville, Lavon, Wylie, Mesquite and Rowlett.