Deciding that it is time to file a bankruptcy can be difficult. However, there are some warning signs that can help you decide if a Chapter 7 Bankruptcy is right for you. Chapter 7 Bankruptcy is often referred to as a fresh start bankruptcy and is designed to assist individuals who no longer have the ability to pay their debts.

1. You are using your credit cards to pay for living expenses because you have to use your income to pay the minimum monthly payment on the credit card bills. While there is nothing wrong with using credit cards to pay monthly bills, you should be paying off the credit cards every month. If you have balances on your credit cards and you cannot get ahead because of the monthly payments on the credit card debts, you may need a fresh start. You need to pay for your family’s food and shelter before you worry about credit card debt.
2. Collection Calls and letters. If you are receiving phone calls and letters from collection agencies about past-due accounts, you may need a fresh start to stop those calls and letters. I have seen clients who are scared to answer their phones because of the harassing calls they are receiving from collection agencies. Likewise, they no longer open their mail because they are overwhelmed by the demand letters. If you are getting stressed out from collection calls and letters, a Chapter 7 Bankruptcy may be the solution for you.
3. Garnishments. If your wages are being garnished or your bank account has been frozen, you may need to file a Chapter 7 Bankruptcy to stop these collection actions. When you are already living paycheck to paycheck, a 25% reduction in your take-home income can devastate your finances. Once a creditor knows where to garnish you, the garnishments will continue to hit your paycheck. When you file a Chapter 7 Bankruptcy, the creditor has to stop the garnishment and we may be able to recover the money that is currently being withheld from your wages.

If any of these apply to you, contact us or call us today at (757) 276-6555 to schedule your free no-obligation appointment with one of our experienced attorneys. We will meet with you, analyze your situation, and explain how bankruptcy can help you to regain control over your finances.

This Firm is a Debt Relief Agency. We assist individuals to become debt free through bankruptcy.