Before you decide to move ahead with filing for bankruptcy in Montgomery County, TX, you must be completely certain that it’s the best move for you given your financial situation. Bankruptcy is only truly worthwhile if you have debts that you absolutely will not be able to dig your way out of.
If you’re looking for some tips as to when it makes the most sense to file for bankruptcy, here are some circumstances in which you should give it some serious consideration:
- You’re getting harassed by creditors: Your creditors will not stop contacting you if you owe them money. Unfortunately, this isn’t a problem that’s just going to go away. Sooner or later your creditors will also hire collections agencies to come after you, which will exacerbate the problem and result in a big hit to your credit. If you can’t keep up with all the collections communications, then it may be a good time for you to file for bankruptcy.
- You’re having to take out loans to pay bills: If you get to the point where you have to start taking out short-term, high-interest loans to pay off some of your bills, then you’re going to worsen your financial situation pretty quickly. You’re essentially borrowing against your own paychecks, and this builds up over time to the point where your income isn’t going to be enough to cover the bills you have to pay off. Other people might take out title loans that result in them losing their vehicle. Ultimately if you find yourself in this situation, bankruptcy might be the best option for you to get yourself out of it.
- You could potentially lose your home: When filing bankruptcy, you might lose some of your assets, but it will help you to hold on to your home. If you find yourself at risk of foreclosure, filing for bankruptcy can help you get caught up on the payments you have to make on your mortgage. Chapter 13 bankruptcy allows you to reorganize your debt and create a repayment plan, which allows you to hang on to some of your assets, like your family home.
- You’re burning through your savings: You should not have to sacrifice your future to pay off some of your existing debts. If you find yourself starting to burn through some of your savings or even going so far as to liquidate your retirement assets, then this is going to be a big-time problem and could result in you being unable to retire in the future, at least anywhere near the time you’d hoped to do so.
These are just a few examples of some of the circumstances in which filing for bankruptcy in Montgomery County, TX can be a sensible option. If you’re interested in learning more about the potential benefits of filing for bankruptcy or how you can go through the process to get yourself the debt relief you need, we encourage you to contact an experienced bankruptcy attorney with any questions. You’re going to need knowledgeable, reliable legal representation to guide you through the ins and outs of bankruptcy law, and to help you find the best possible solutions for your particular scenario.
Reach out to James R. Jones, Attorney at Law to learn more. Our team looks forward to hearing from you!