Do you face a mountain of debt? Is it becoming more and more difficult to stay on top of your payments? Have other life circumstances affected your ability to pay bills? If so, you may have considered bankruptcy. But how do you know if that’s the right choice for you? It’s a big and life-altering decision. This post will go over 3 reasons you should file for bankruptcy. If you’re in Western Massachusetts or Northern Connecticut and decide to file for bankruptcy, Attorney David Brunelle is here to help you navigate the process from start to finish.
Overwhelming Credit Card Debt
Credit card debt is one of the most common reasons people file for bankruptcy. There’s a misconception that all credit card debit is bad, but that’s not always the case. You can handle credit cards responsibly. However, it can be tempting to overspend if you don’t know the basics about how a credit card works. Credit cards typically have high interest rates because they are unsecured, which means that they are not backed by collateral. This results in higher risk for the lender. If you leave a balance on a credit card and pay only the minimum monthly payment, it’s easy to get overwhelmed by the amount you are expected to pay back. In this instance, bankruptcy could be a viable option for you.
Job Loss Or Underemployment
An unexpected loss of a job can be financially devastating. While it’s a good idea to set aside some funds in case of emergencies, this is not always possible. If you depend on a weekly paycheck and lose that source of income, you can drain through any potential savings you have quickly. The stress increases if you have a family and/or a mortgage to pay. Try to keep on top of any payments you can, even if you need to establish a reduced repayment plan. In circumstances where these scenarios are not possible, you may want to consider filing for bankruptcy.
Divorce And Family Emergencies
Are you in the middle of divorce proceedings or recently filed for divorce? Maybe there are other family circumstances that cause you financial and emotional stress. Divorce and similar legal scenarios can often leave you with a significant dent in your wallet. Legal fees and potential court-ordered payments like alimony or child support eat away at your savings. In many instances, both parties in a divorce face serious financial hardships. The emotional and financial toll of a divorce can be enough to make you wonder if you should file for bankruptcy. If you have debt collectors calling you every day or you face losing your home to foreclosure, you might feel like you have no other choice. Bankruptcy could be a good option for you because it can alleviate some of those stressors.
Can you relate to any of these services but are still unsure about if you should file for bankruptcy? Located in Massachusetts or Northern Connecticut? Contact the Law Offices of David Brunelle today and he will help walk you through the process of getting you back on your feet with as little stress as possible!