Don’t Ignore the Warning Signs—Bankruptcy Might Be the Best Way Forward

Warning signs it's time to file bankruptcy
Warning signs it’s time to file for bankruptcy

Every week, we hear from New Yorkers who waited too long. They hoped things would turn around. They kept paying the minimums, dodging calls, borrowing from family—until it all collapsed.

Here’s your bankruptcy wake-up call: If you see these five signs in your life, it may be time to file Chapter 7 or Chapter 13 now—before it’s too late.

1. You’re Getting Sued or Garnished

If a creditor has filed a lawsuit or your paycheck is getting garnished, time is of the essence. Bankruptcy can stop the process—but only if you act fast.

  • Chapter 7 can wipe out lawsuits from credit cards, personal loans, and medical bills.

  • Chapter 13 can protect your wages and stop a garnishment cold.

Once a judgment is entered, it gets harder (and more expensive) to undo. Don’t wait until your bank account is frozen.

2. You’re Behind on Rent or Facing Eviction

In NYC, missing rent can quickly lead to court proceedings. If you’re already in Housing Court or received a notice of eviction, bankruptcy might be your best defense.

  • Filing Chapter 13 can help you catch up on rent through a repayment plan.

  • If you’ve already had a judgment entered, timing is critical. Bankruptcy may pause the eviction—but it won’t reverse what’s already been decided.

3. Your Home Is in Foreclosure

New York has one of the slowest foreclosure processes in the country—but that doesn’t mean you should delay. Once your home is scheduled for auction, bankruptcy is often the only tool left to stop it.

  • Chapter 13 can save your home and allow you to repay arrears over 3 to 5 years.

  • Chapter 7 might delay the sale temporarily, but isn’t a long-term fix.

If you’re more than 2 months behind on mortgage payments, talk to a bankruptcy attorney immediately.

4. You’re Using Credit Cards to Pay for Essentials

If you’re buying groceries, gas, or medicine with credit—and making minimum payments just to survive—it’s a major red flag.

This cycle is unsustainable and often leads to a financial crash. A bankruptcy filing can:

  • Discharge unsecured debts like credit cards and personal loans

  • Stop interest from snowballing

  • Let you breathe again

A bankruptcy wake-up call means taking action before you max out every card and run out of options.

5. Your Total Debt is More Than You Can Realistically Pay

Ask yourself: if you stopped paying anything today, could you ever reasonably pay it all off?

  • If the answer is no, bankruptcy might be your smartest move.

  • Chapter 7 wipes out most debts in as little as 90 days.

  • Chapter 13 allows you to repay what you can afford, not what creditors demand.

Debt doesn’t have to control your life. Sometimes the most responsible step is saying “enough” and getting a fresh start.

Don’t Wait for Things to Get Worse

The worst bankruptcy mistakes we see? People who waited too long.

  • They lost their homes.

  • They drained their retirement.

  • They paid the wrong debts first.

You deserve better. If any of these 5 signs sound familiar, don’t wait.

If you’re considering bankruptcy or simply want to understand your options, we’re here for you. Call or text us at 212-244-2882, email us at info@midtownbankruptcy.com, or visit www.midtownbankruptcy.com to get started. At The Law Office of William Waldner, P.C., we’ve helped countless New Yorkers take control of their financial future — and we’re ready to help you, too.

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