Are you struggling to make ends meet every month? Has a medical emergency put you behind on other bills? Perhaps the company you work for has downsized and you had to take a pay cut or lost your job. No matter the reason for your financial troubles, there are options available to help you crawl out from under piles of debt.
Many people in Medina and across Ohio have found themselves in similar circumstances. While some people simply put on blinders and try to ignore the debts they cannot pay, others take a step in the right direction and begin to research real options that can help get their debt under control. For some individuals, a session of credit counseling is enough to effectively reorganize finances. However, others need to take more drastic measures such as bankruptcy. Here are a few signs that it could be time for you to start the bankruptcy process.
Debt collectors are taking you to court
When a debt collector cannot collect on a debt and the debtor is not responding to phone calls or notices, the collector will often file a lawsuit in court. This is a tactic to force the debtor to pay. Unfortunately, it can also increase the amount of the debt since the collector will often add court costs and legal fees to the original amount the debtor owed.
If you have found yourself in this position, filing for bankruptcy can put a stop to any additional attempts to collect the debt. The bankruptcy court will typically issue an automatic stay against the creditors that is valid through the duration of the bankruptcy process.
Debt collectors are garnishing your wages
If a debt collector takes you to court and wins the lawsuit, the collector can take the additional action of garnishing your wages to collect on the debt. If you are already struggling to pay your bills before the garnishment begins, then losing even a small percentage of your paycheck can put you further into financial trouble. The automatic stay will also protect you from wage garnishment unless it is for domestic support obligations like child support.
You're using credit cards for the necessities
If you have lost your job or suffered some other financial setback, you might end up turning to your credit cards to pay for things like groceries, utility bills or other necessities. This can bury you beneath even more debt when you are already struggling to keep up with your car payment, house payment or other basic living expenses. If this describes your situation, bankruptcy may be the best option to help you regain control of your finances.
Foreclosure is on the horizon
Losing your home might be your biggest fear if you have been struggling to keep up with the mortgage payments. If you have started to fall behind on making these payments, then foreclosure might be a real possibility. However, if you start bankruptcy proceedings before the bank begins the foreclosure process, you might be able to get caught up on your payments and avoid losing your home.
In recent years, many people have found themselves facing difficult choices when it comes to managing their debt. If you have suffered some kind of financial setback or your debt has spiraled out of control, it might be time to look into your options for filing bankruptcy.