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How do I know when to file for bankruptcy?

If you suddenly find yourself out of a job or with less income in the Rossville area, you might panic when you realize your debts are piling up. You may have also fallen behind on your mortgage and car note. Though you are working hard to keep up with the minimum payments, you need to know when it is time to throw in the towel and consider bankruptcy. 

Late payments carry additional fees that can dig you into a deeper hole. If you cannot see yourself paying off your debts in a five-year period, it is time for you to examine your options. Though bankruptcy is probably the last route you want to take, it can help give you a chance to start over and regain financial stability. 

Chapter 7 bankruptcy can make your debts more manageable. Creditors agree to lower the amount you owe in exchange for on-time payments over the course of a three to five-year period. During that time, late and penalty fees will no longer accrue which can make it easier for you pay your debts off. 

Filing for bankruptcy can help protect your wages and bank accounts from garnishment. According to FindLaw, the automatic stay protection does not extend to child and spousal support payments. When you default on your financial obligations, your creditors may pursue payment by filing lawsuits against you. This can put you in a financial bind and may cause you to lose everything you are working hard to keep. 

There is no shame in filing for bankruptcy. Every day, people across the country find themselves facing circumstances where they must choose between putting food on the table and paying their bills. Trying to maintain a household on less income is hard. Know when it is time for you to stop struggling and seek out bankruptcy protection.

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