3 Reasons You Should Consider Filing for Bankruptcy
When you think of bankruptcy, do you immediately go to the worst-case scenario? Do you imagine being judged by your loved ones and being forced out onto the street? Bankruptcy isn’t as bad as most people paint it out to be, and if you’ve found yourself relentless struggling to stay on top of your financial situation and you’ve done everything else you can think of, then bankruptcy might be the right choice for you.
Before filing, it’s important to remember that while you will recover from its effects, the bankruptcy will stay with you for up to 10 years. It will make it harder to get approved for loans and credit cards, but if it’s your only option, then it’s the best choice. If you find yourself in the following situations, then you should consider contacting a Rockville bankruptcy lawyer.
- Excessive Medical Bills
Whether you’ve fallen and hurt yourself and need long-term care, or you needed emergency surgery, your medical bills can pile up quickly. Even if you get on payment plans, the payments for all medical providers can become too much. Plus, some providers refuse to accept payment plans and threaten to send you into collections.
If you’ve already tried to file for financial assistance through the hospital and county and still can’t find any reprieve, then you should consider filing for bankruptcy. Bankruptcy will stop the harassing phone calls and eliminate all of your medical debt.
- Out of Control Credit Card Debt
Sometimes, when you have a lot of debt, you find that you’re relying on one credit card to pay the bill of another. If you find that you’re continually robbing Peter and pay Paul, you should look into how bankruptcy can help. Furthermore, if you must rely on credit cards to pay for daily necessities, you likely need to file for bankruptcy.
Don’t feel that only catastrophic life events will qualify you for bankruptcy. Many bankruptcies happen because people don’t make enough money and must rely on credit or were never taught good money management skills and didn’t realize that they would eventually be required to pay their debts back.
- Facing Foreclosure
If you have found that you’re home has no equity, and you’ve lost the ability to pay your mortgage, then you could be a good candidate for bankruptcy. A bankruptcy will temporarily stop the foreclosure process, so you can work with the bank and the court to find an acceptable solution. You might find that you have to sell the home to help pay the debts, but it will be worth it in the long run to remove the constant stress and anxiety of dealing with your financial troubles.