Is Bankruptcy in Your Future?

Financial stability:  it’s something more and more people are finding elusive these days.  Sometimes it feels like no matter how hard you work or what cuts you make, you just can’t seem to get your financial footing.  It’s exhausting mentally, and is taking a toll in other areas of your life. How do you know when it’s time to just throw in the towel and get help from an experienced bankruptcy attorney?

Red Flags 

There are some warning signs that could serve as indicators that you may be in over your head when it comes to finances, and it’s time to take a look at trying an alternative strategy moving forward. They include:

• You’ve taken out a second or third mortgage in order to get on top of your bills, but now you find that making those payments is hit-and-miss.
• You don’t even qualify for a home-equity loan, despite drowning in credit card debt.
• You have sought out a debt-management option, but don’t have enough in assets to qualify for this type of help.
• You have medical bills that won’t be written off by the hospital or other providers, and are looking at thousands, tens of thousands, or even hundreds of thousands of dollars in debt.
• You’ve been demoted or lost your job altogether, unemployment benefits won’t come close to covering your bills, and you’ve had no luck finding work at your previous salary.
• You make monthly credit card payments, but you’re only paying the interest on the debt, never even chipping away at the total amount you owe.
• Your credit cards are maxed out, and you’re considering getting a new card to use to pay off existing credit card debt.
• You’ve had to use predatory loan services with outrageous interest rates to make it month-to -month.
• You’ve had a vehicle repossessed, and other creditors are banging down your door.

What is Bankruptcy, Anyway?

 When a person files for bankruptcy, it’s because they just can’t manage to get out from under their debt. Once the filing is official, creditors have to back off and allow the process to play through. There are a few pathways forward, the most common of which for individuals include:

• Chapter 7 is for debtors who don’t have the income to address their debt, and are willing to part with the lion’s share of their material possessions in order to get a fresh start. While a limited amount of property is kept by the debtor, the rest is liquidated in order to pay creditors.
• Chapter 13 is designed for individuals who do own property and have some income that would allow them to make partial payments toward some of their debt. A repayment plan is created that gives debtors a number of years to get even while retaining many of their assets.

Ready for Help? 

At the Law Office of Julia Kefalinos, our experienced Miami bankruptcy attorneys are here to answer your questions and help you to move forward using the best options for your situation.  If you’re ready to take the bull by the horns and get your debt under control, schedule a confidential consultation in our office today.