When is it Time to File for Bankruptcy?

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Most people consider filing for bankruptcy only as a last resort. But how do you know when it’s time to file? Here are some warning signs that may indicate that it’s time to file bankruptcy.

Considering a Payday Loan

If you’re thinking seriously about getting a payday loan. Payday loans are high interest, short-term loans. These types of loan often target those with poor credit history and often charge interest at over 100%. These lenders often require that you give them access to your bank account. So if you’re seriously considering one, that means your finances need some help.

Getting Sued by a Creditor / Garnishment of Wages

Getting sued by a creditor is another warning sign that your finances are in trouble. Once a creditor sues you and gets a judgment, they can garnish your wages, freeze bank accounts, and attach a lien to your real estate. A lawsuit tells you that it may be time to consider filing bankruptcy. If that lawsuit turns into a garnishment of your wages and or bank account, you definitely know it’s time to file bankruptcy. Once one creditor gets a garnishment, all of the others will soon follow suit.

Credit Account Balances that don’t decrease

Another warning sign that it may be time to file for bankruptcy, is if your revolving credit account balances are not decreasing. Revolving credit includes credit cards and other lines of credit. If the balances on these accounts stay the same month after month, or if they increase, that is a big warning of financial trouble. There is nothing wrong with using credit responsibly. But if the account balances are not decreasing, something needs to change. Bankruptcy may be the change that you need to get back on track financially.

Behind on Monthly payments for Mortgages or Vehicle Loans

Bankruptcy can stop vehicle repossessions and also stop home foreclosures. People that are concerned about overdue vehicle loans and mortgage loan payments should seek the advice of an experienced attorney.

If you’d like further information, visit our website at www.kansascitybankruptcy.com or better yet, call us for a free initial consultation to evaluate your financial situation. At WM Law, we are “Here to Help”.

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Jeffrey L. Wagoner


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