Every year, thousands of Americans rely on bankruptcy to get their finances in order. Increasingly, the most common reason why people in the United States file for bankruptcy is due to medical debt.
One problem many people have trouble figuring out involves determining when precisely to file for bankruptcy. Everyone will have a different best time to file. If any of the following apply to you, then you should consider filing for bankruptcy sooner rather than later.
More debts will come in the future
You should try to pay off your debts to the best of your ability. However, even though you pay every month, your debt only increases. You may have started with medical debt, but now you find yourself becoming consumed by credit card debt. The only expenses you place on your credit card are essentials, and there is no way to dig yourself out of this hole. In this instance, you need to file for bankruptcy before your debt becomes too much to handle.
You want to modify your mortgage
Over time, homeowners may want to alter the terms of their home’s mortgage. This is difficult if you already have a ton of debt and poor credit. Bankruptcy can help you wipe out your debts, and over the course of several years, you can have good credit once again. Lenders will be wary if you recently filed for bankruptcy, so you should begin to proceedings now, which will allow you to modify the terms within a few years.
You suffered a pay cut
Chapter 7 bankruptcy applies to people who cannot pay off debt on their own. Therefore, if you lost your job or got a new job that pays less, then you may qualify for Chapter 7. You will still need to pass the means test, which looks at your pay for the last six months. Therefore, if this pay cut just happened, then the means test may not apply to your new wages.
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Dramatization – not actual clients in pictures and videos. Thomas C. McBride,attorney in Alexandria, LA.”