Most people take their debts seriously, but it can be difficult to know when to file bankruptcy and when to choose another strategy like debt consolidation. The Law Office of William Waldner offers a free, no obligation consultation that can help you make an informed decision. This is a great place to start when your debt starts piling up and you can no longer pay your bills.

Ultimately, only you can make the decision as to whether or not to declare bankruptcy, but here are some ways to know if bankruptcy might be the right fit!

You can only afford to make the minimum payments on your credit cards.

Let’s face it. It’s much easier to make the minimum payment on your credit cards each month, as it leaves you more money for other things. But only paying the minimum racks up interest rates and keeps you in debt longer. Also, keep in mind that most credit cards have variable interest rates, which means your rates can increase over time.

You are receiving calls from your creditors.

Collection agencies buy past-due debts from creditors and other businesses in an effort to get people to repay them. And you probably already know this, but collection agencies are ruthless! They will call day and night, every day.

You have a right to ask a debt collector to stop contacting you, though the only real way to get them to stop is by filing bankruptcy. When you file bankruptcy, an automatic stay goes into effect, which stops creditors who want to start or continue taking action against you.

You’re using credit cards to pay for necessities.

Credit can come in handy if your hot water heater goes out unexpectedly or your dog swallowed a toy and needs surgery. But if you’re relying on credit cards to cover necessary expenses like food and utility bills, you’ll definitely want to take a look at your situation.

Most likely, you’re using credit cards becuase you don’t have enough income to cover your bills. This is a good sign that bankruptcy is in your best interests, as it will erase your debts and free up money so that you can pay for the essentials. Plus, doing this will save you tons in interest!

You owe more than what you should be paying. 

Hopefully you can make the minimum payments on your credit cards, but if you can’t pay any more, or you’re struggling to make the minimum payments, bankruptcy might be a good choice. Chances are, you’ve had some setbacks that have caused you to take home less pay, such as a medical illness or job loss. Filing bankruptcy in Yonkers NY will help you get back on track.

You are considering debt consolidation.

Debt consolidation allows you to consolidate your payments into one large loan. This helps you keep track of your outstanding debts and gives you more time to pay them back. This monthly payment also tends to be more affordable than making the original payments.

While debt consolidation is certainly worth looking at, it’s possible that it won’t solve your problems because it only consolidates debt – not gets rid of it. Chapter 7 bankruptcy erases your debts, and Chapter 13 bankruptcy puts your debts into a repayment plan based on your income.

You are considering selling some of your possessions.

Some people have no choice but to downsize their home or get rid of their car in order to afford their bills. Taking these steps might be difficult today, but they can help you build a more affordable lifestyle that doesn’t have you in debt. However, if selling some of your possessions won’t help, bankruptcy might be the better option. In fact, many clients in New York are able to keep their homes and cars through it all.

Find Out if Bankruptcy in Yonkers is Right for You

The Law Office of William Waldner works with clients from all walks of life who need to file bankruptcy. We know this process can be difficult, especially when you’ve been committed to paying your bills on time. But there are situations where bankruptcy will give you the fresh start you deserve! To schedule your consultation, contact our bankruptcy lawyers in Yonkers NY today!