When to Consider Bankruptcy

There are many reasons people might consider filing for bankruptcy in Arizona. Maybe their finances have gotten a bit out of control. They may be beginning to hear from collectors. Their credit score might be starting to decline. Or maybe it’s a bit more advanced: threats of foreclosure and repossession are looming. Creditors are in nearly daily contact with them. They have fallen behind on their bills and still can’t seem to keep up. Either way, it may be time to make a decision and consult with an experienced Phoenix bankruptcy lawyer.

In some cases, bankruptcy can be a good solution to a multitude of financial issues, but which stage is the best to consider filing? Here are a few signs that may signify it is time to assess your options and consider speaking with a bankruptcy attorney in Phoenix, AZ.

Your Debt is Growing More Quickly

If you notice you are paying your bills, but the balance just will not seem to lessen, it may be time to take action. When caught early on, debts can be more easily dealt with. Procrastination until circumstances improve may be a good option for some, but for others whose income is relatively static and living expenses are well-established, nipping debt in the bud can be instrumental in retaining your lifestyle. This reason alone is likely not enough to send you straight to filing, but it may be a good indicator that speaking with an attorney or financial adviser could be in your best interest.

You Are Dipping Into Major Savings Funds

There are major funds that most adults regularly make deposits for, for the sake of their future and that of their children. If you find yourself routinely tempted or forced into removing funds from your retirement or your children’s college funds to keep your head above water, it may be wise to consult a Phoenix bankruptcy lawyer about the best steps to rectify your situation.

Your Family is Being Affected by the Situation

Difficulty making daily ends meet can be stressful. Trouble buying food, paying rent, or maintaining your utility payments can deeply affect your home life and sense of well-being. Be it a spouse, children, elderly parent, or ill relative, if there is someone relying on you for his or her daily well-being, consider getting help.

You Cannot Realistically Afford to Repay the Debt

Sometimes the debts we accrue seem to grow faster than our paychecks can keep up with them. If your debts have reached a point of crisis and you are having difficulty envisioning a way you might pay them off, speaking with bankruptcy lawyers about your financial options is a smart move. Large debts have a way of growing exponentially, so addressing the situation early is usually in your best interest.

Your Home or Major Possessions Are Jeopardized

If your home, car, family heirlooms, or any other highly valued possession is in danger of being lost to you, speaking with a seasoned Phoenix bankruptcy attorney may be a good idea. Bankruptcy proceedings in Arizona carry with them an automatic stay, which prevents many belongings from being repossessed or taken as payment by collectors. It may be that filing early could allow you to keep valuable possessions.

The Potential for Litigation Has Become Imminent

Being taken to court is costly, both socially and financially. If it appears that you will soon be summoned to court to address a collector’s or creditor’s charge against you, taking preemptive action may be extremely helpful. Contact Phoenix bankruptcy attorneys who understand the complexity of your unique situation. Automatic stays extend to litigation, and while you are in the process of filing for bankruptcy, your creditors will be unable to press charges against you.