Most people aren’t thrilled to file bankruptcy, but it can be the solution you need when you’re overwhelmed with debts. If you’re having trouble paying your bills, the first step is to speak with an experienced bankruptcy attorney in New York. They will look over your finances and bills and determine if bankruptcy is the best solution.

A qualified and reputable bankruptcy lawyer won’t suggest that you file for bankruptcy unless it’s the right option. It’s possible that debt consolidation, credit counseling or selling some of your assets can also get you out of debt. Once you have the facts, you can then proceed with the best option.

Bankruptcy is an answer for some people, but it’s not for everyone. This is why it’s important to know when you should file bankruptcy, and when you should not file bankruptcy. Let’s look closer at some of the factors our law firm evaluates at when making a determination. 

Harassment from Creditors

One of the first signs that bankruptcy is in your favor is being harassed by creditors. When you don’t pay back the money you owe, the creditors will come looking for it. And ignoring them won’t make them go away. Constant harassment only adds to the stress you’re already facing – and the fees and service charges will keep racking up.

When you file bankruptcy in New York, your creditors are required by law to stop contacting you. Something called an ‘automatic stay’ takes effect at the time your bankruptcy is filed, protecting you from harassment. This way, you can focus on rebuilding your finances.

Living Paycheck to Paycheck

While living paycheck to paycheck isn’t necessarily a reason on its own to file bankruptcy, it is something to consider. It’s estimated that 64 percent of Americans live paycheck to paycheck due to the increased costs of living.

If you find yourself not paying one bill just so you can buy food or pay utilities, it’s worth looking into bankruptcy. Bankruptcy gives you a clean slate so that you can pay your essential bills. Just be sure to go through credit counseling so that you can learn how to manage your money more effectively.

Facing Foreclosure

Have things gotten so bad that your home is now in foreclosure? If you haven’t been making your mortgage payments, you could lose your home. That doesn’t solve any problems for most people, as they’ll have to find a new place to live and pay the high cost of rent.

A better option may be to file bankruptcy. You can even live in your home while the process is taking place! This gives you time to find new living arrangements, if you choose. However, if you want to keep your house, all you need to do is keep current on your mortgage payments, something you should be able to do if you erase your other debts.

Recently Sued

If you’ve recently been served with a lawsuit by one of your creditors, you do have the option to file bankruptcy protection. Bankruptcy stops many legal actions, giving you some room to breathe and figure things out.

An automatic stay prevents creditors from continuing any type of collection activity, including attempting to win a money judgment in a lawsuit. This does not work for other types of lawsuits, however, such as criminal cases, divorce actions and child custody/support cases.

Need a Fresh Start

Finally, and perhaps most importantly, you should file bankruptcy when you need a fresh start. We all go through difficult times in our lives, and some people are impacted by more financial challenges than others. Whether you’re bouncing back from a divorce, an illness or something else, bankruptcy can give you the clean slate you’re looking for.

While it’s true that bankruptcy does have a negative impact on your credit, most people are in a much better position within a year or two. Once the bankruptcy process is over, you can even start applying for a new credit card. Hopefully you won’t need this right away, as your bills will be much lower, and you should be able to live within your means.

Speak with a Professional Bankruptcy Attorney in New York

Bankruptcy is a big decision that you don’t want to take lightly. But there comes a time when you have to stop digging yourself out of a hole you can’t escape. If you’re in this position, schedule a free consultation with bankruptcy attorney William Waldner. Once you have all the facts, you’ll feel better about taking the next step forward!