3 Situations That May Force You To Declare Bankruptcy

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3 Situations That May Force You To Declare Bankruptcy

16 January 2023
 Categories: Real Estate, Blog

Many people consider bankruptcy as the last option for their financial woes. Therefore, they opt to try other strategies to pay their debts instead of filing. Unfortunately, some of those who make this decision continue struggling to keep up with their debts. As a result, creditors start threatening them or even get the right to acquire their property. This is why you should refrain from putting off plans to file for bankruptcy, especially when you start struggling with your debts. When you face this problem, contact an attorney to know whether declaring bankruptcy is the right option. Your lawyer will advise you to file if you're in the following situations.

You Have Huge Medical Bills

If you sustain severe injuries or illness requiring long-term care, you might accrue huge medical bills quickly. When this happens, you might explore different financial options to enable you to pay your medical costs. Unfortunately, the help you get might not be enough to pay for your needed services until you recover. Ultimately, this might force you to foot the bills from your pocket. However, clearing your debts might be challenging, especially if you stop working because of your condition. In such a situation, bankruptcy can help you eliminate your medical debt, and a lawyer to help you with the application process. 

You Are About to Lose Your House

If you've defaulted on your mortgage payments for a long time, your lender might acquire your house to recover their money. Luckily, you can stop foreclosure and save your house by declaring bankruptcy. However, this is only possible if you act immediately when the creditors notify you that they want to acquire your home. Therefore, your first step should be to contact a bankruptcy attorney to help you to prepare for the filing process. This way, you will stop the collection activity and give yourself time to organize and keep up with your mortgage payments.

There Are Threats of Lawsuits Against You

If creditors threaten to file lawsuits against you for failing to pay your debts, you must act fast to save your belongings. Note that the most important thing you can do at such a time is to hire a lawyer to help you file for bankruptcy. More so, they will take the necessary steps to ensure your application is successful. This will enable you to stop legal action and give you time to consider your debt repayment options.

If you're in any of the situations above, declaring bankruptcy might be your lifeline. Therefore, you need to contact a bankruptcy attorney. They will prepare and file a bankruptcy application as soon as possible to prevent legal action against you and enable you to get a fresh start.