post

post cover

When Should You Consider Filing for Bankruptcy?

When credit card and medical bills start piling up faster than you can afford, filing for bankruptcy may seem like a good idea. While going bankrupt can help eliminate some of your debts, it can also hurt your credit. This is why it should only be considered as your last recourse.

However, if you start to experience any of the signs below, then maybe it’s time to file for bankruptcy. If you’re unsure how to go about the process, Law Office of Davis & Jones, P.C. noted that bankruptcy attorneys in Salt Lake City would be able to help you with this endeavor.

You’re Hounded by Debt Collectors

If you continuously fail to pay your debts, creditors will soon turn to a debt collection agency for help. Debt collectors will hound you every day and when their letters and phone calls go unanswered for an extended period of time, they may file a lawsuit to pressure you to pay your debt. A collection lawsuit is not a joke. If you lose, you risk owing more in attorney fees, as well as court costs.

A bankruptcy petition can offer you respite from creditors, as it provides some level of protection against creditors. Your creditors are not allowed to do anything, like filing a lawsuit against you, until your bankruptcy case is dismissed or discharged.

Debt Collectors are Starting to Garnish Your Wages

Some states allow your bank account to be frozen. Creditors may also obtain a court order for wage garnishment. This means your employer is mandated by law to withhold some amount from your paycheck until your debt is paid in full. This can have a devastating effect on your finances, especially if you live from paycheck to paycheck.

READ  Personal Injury: Understanding Premises Liability Cases

Filing for bankruptcy will provide you with an automatic stay against creditors, which will prevent them from garnishing your wages. However, take note that this automatic stay doesn’t apply to wage garnishments for alimony, child support, or other domestic support obligations.

Filing for bankruptcy petition is not something that should be taken lightly. It’s a life-changing decision that can have a devastating impact on your life and credit. Additionally, not everyone is qualified to file for bankruptcy. There are certain criteria to be met before you can file a petition. Poor spending habit is not one of them.

Recent posts

  • Personal I…
    Car injuries are not the only instances that will land you into […]
  • The Curren…
    Statistics show how Britain’s population has grown due to the […]
  • Birth Injury CasesBone Fract…
    With the labor and child delivery procedure being complicated, […]
  • The Compel…
    When you finally have enough means to buy a house, you’d […]
  • Colorado a…
    When dealing with property division in a divorce case in […]
  • lawyer in officeLegal Work…
    If you’re thinking of joining the legal profession, then you may […]
  • Marriage EqualityA Final De…
    The question of marriage equality has been a hot topic for at […]
  • Legal NurseCan a Nurs…
    The legal team is important in any industry as they will verify […]
  • Felony Attorney in ProvoCriminal N…
    Once convicted of a crime, always a criminal, right? Not […]
  • When Wealt…
    The family is a home, the place where you feel unconditional […]