Financial troubles can happen to anyone at any time. Even the most financially
conscientious individuals can be struck by an unexpected circumstance
like an illness or job loss. If you are struggling with debt and are unable
to keep up with your bills, you may be wondering if
bankruptcy is the answer. Below, we have identified four signs that it may be time
to speak to a bankruptcy lawyer about your options.
Four signs you should consider bankruptcy:
1. Your balances won’t go down. Are you making payments on your debts, but the amount you owe never gets
any smaller? If you are only ever making payments on interest and are
not able to touch the principal amount of your debt, it may be time to
consider filing for bankruptcy. As a rule of thumb, if your debt cannot
be paid off in full after about three years, it is in your best interests
to seek legal advice to begin working toward a solution.
2. You are using retirement funds to pay your debts. Raiding your retirement funds is essentially stealing from yourself during
a time when you will be relying on your savings to get by. Whether you
are considering or have already taken an early withdrawal, this is a sign
that bankruptcy may be the solution you require. Paying off your loan
faster through the use of your retirement funds will cost you more in
the long run when you don’t have those resources later on.
3. Others will suffer if you do not file. Caring for dependents like children, a disabled family member, or an
elderly parent can be financially draining. If you find yourself unable
to both care for your family and manage your debts, your family’s
well-being should come first. Filing for bankruptcy can help relieve you
of your debts and allow you the fresh financial start you need to continue
ensuring the health of your family.
4. Your mortgage is under water. Bankruptcy can provide much-needed relief if you are upside down on your
home. Filing for bankruptcy can help in the following ways:
- It can help you catch up on your payments or obtain a loan modification
so that you do not lose your home
- It can erase debt that could be due after a
- It can eliminate a home equity loan or second mortgage
- It can help you avoid a large tax bill from cancellation of debt income; and
- It can free up money that you were using to pay other debts so that they
can now be applied to your mortgage payment.
There are many indicators of problems with debt and financial uncertainty.
Because every situation is unique, these problems can show themselves
in a variety of ways. Whether you’re facing troubles making payments
now, have encountered an unforeseen event that impacts your income, or
are simply concerned about getting control of your finances for the future,
there may be solutions for you.
At Allmand Law Firm, PLLC, we listen to how debt and financial instability
are affecting your life, and we offer experienced counsel as to how we
may be able to help you find lasting debt relief.
Considering Bankruptcy in Dallas / Fort Worth, Texas?
If any of the above situations apply to you, now is the time to consult
with an experienced and dedicated Dallas bankruptcy attorney at Allmand
Law Firm, PLLC about your options, including
Chapter 7 or
Chapter 13 bankruptcy. Reed Allmand is Board Certified in Consumer Bankruptcy by
the Texas Board of Legal Specialization, and our firm has earned a 10.0
Superb Rating from Avvo. As one of the largest and most reputable bankruptcy
filing firms in Texas, we have helped tens of thousands of people regain
their financial independence and stability over the past decade. We look
forward to seeing how we may be of assistance to you.
To begin discussing your case during a
free financial empowerment session, please get in touch with a Dallas bankruptcy lawyer today!