Top 5 Signs You are Heading towards Bankruptcy in New York

Top 5 Signs You are Heading towards Bankruptcy in New York

Many New Yorkers struggling with their bills wait too long to speak to a bankruptcy attorney. Not every person with debt should file bankruptcy, but a bankruptcy consultation in New York is typically free of charge and delaying a needed bankruptcy can be devastating. If you think you need protection, speak to a bankruptcy attorney. People will often delay meeting with an attorney because they are afraid of the cost of a bankruptcy or the stigma associated with filing, but losing everything first only to end up filing bankruptcy anyway is a much worse and sadly a much more common outcome for most consumers in New York. It’s hard to know when to say when, but you may be on the edge if you are showing any or all of the top five signs below.

1. You are carrying large amounts of Credit Card Debt and are struggling to pay the minimums…

If you are having trouble with your credit card debt, are only paying the minimum balances or have even missed some payments already then you should take this as the first sign that you could be in need of bankruptcy protection. If you are hearing from debt collectors already, or relying on credit cards for basic items like gas or groceries then you should speak to an attorney ASAP. You could likely benefit from bankruptcy protection in New York City.

2. You are relying on high interest or untraditional loans…

Living off credit cards is bad enough, but if you are adding new credit cards and maxing them out just to make ends meet then you are beginning a downward spiral that might be impossible to break without the help of bankruptcy. If you are turning to payday loans, home equity lines of credit, or retirement funds in addition to new credit cards then you should immediately consult a bankruptcy attorney in New York City.

3. You can’t afford an unexpected medical procedure….

When someone in the family is sick or injured there is really no choice but to take them to the doctor. Whether or not you can afford the procedure is secondary to getting better. Most of us have no savings for an unexpected illness, and even the insured are often left with huge personal medical bills after a necessary procedure. Unpaid medical bills are one of the most common reasons for filing bankruptcy. Don’t sell your home or liquidate your bank accounts to pay for your medical treatment before speaking to an attorney.

4. You have lost your job or aren’t making as much as you did…

New York City is an expensive place to live and the fact of the matter is most of us do not have a cushion. One month of unemployment for the average New Yorker is enough to put them underwater, and two months of unemployment or even underemployment will drive many consumers to the edge of bankruptcy. If you are having trouble finding work, or have work but still can’t make your ends meet without credit cards then you should start considering bankruptcy relief.

5. Your home is facing foreclosure or eviction…

Bankruptcy will stop the foreclosure or eviction process, and allow you a chance to save your home. Debtors filing in New York City have the added benefit of being among very few districts in the nation that have loss mitigation programs built into the bankruptcy process. These programs will force the cooperation of your bank and will prevent the bank from delaying the modification process or playing any nasty tricks. Having the court’s support behind you will provide a much better outcome when trying to save your home. And with the help of bankruptcy you will be able to pay for you home more easily since your credit cards, medical bills, and other toxic debts will be eliminated through the process as well. Additionally, in a Chapter 13 Bankrutpcy your rental arrears can be spread out over 5 years to save your rental apartment.

If any of the above sounds familiar you need to take action to protect yourself before things get worse. Putting your head in the sand will only delay the inevitable and often means you will be losing assets that could have been protected had you found help sooner. To find out if bankruptcy would be in your best interests contact the Law Offices of William Waldner online or at 212.244.2882 to arrange a free consultation today. We only practice bankruptcy law in NY and have a greater than 99% success rate for Chapter 7 cases filed as of September 11, 2015.

**** DISCLAIMER: This article is intended for educational purposes only. By reading no attorney-client relationship has been created. Prior results do not guarantee a similar result for future clients.

William Waldner