You Are a Target of Debt Collectors
If you are considering bankruptcy, you are probably receiving calls or notices from multiple debt collectors. Filing for bankruptcy under Chapter 7 will cancel most of your unsecured debt. Filing under Chapter 13 will establish a long-term debt repayment plan. Either way, both options can alleviate the anxiety of being pursued by collection agencies.
You Are Dipping Into Your Retirement Savings
Many people with large financial debts struggle to pay as much as possible to avoid bankruptcy. Unfortunately, efforts to pay bills include depleting savings and retirement accounts, which prolongs financial difficulties. By filing for bankruptcy, individuals can eliminate their debt payments and still keep their retirement savings.
You Are Not Paying Your Mortgage
Bankruptcy helps to avoid an imminent foreclosure. By eliminating the bulk of unsecured debts, funds become available to pay a home's mortgage, which bankruptcy does not waive or extend. A bank can still foreclose on a house if debt relief measures are insufficient to meet mortgage payments; therefore, it is vital to ensure these monthly payments.
You Want To Rebuild Your Credit
Bankruptcy may waive all of your existing credit card debt, but that doesn't mean you can not get credit again. On the contrary, after filing for bankruptcy, most people receive offers from many credit card companies. Although credit limits may be low, they can provide emergency funding and help to increase credit scores.
If you are drowning in debt and wonder when is bankruptcy a good idea, an Oxnard bankruptcy attorney can explain appropriate filing options and answer any questions you have about starting your financial recovery.