Signs It Is Time to File For Bankruptcy

Working and paying bills is something most people are quite accustomed to. Missing work due to injury or illness can put a person in a financial tailspin. In some cases, recovering from this tailspin can be a bit harder than a person thinks.

There may come a time when a person is unable to pay their bills due to the financial problems they are facing. One of the best things a person can do when facing this type of financial uncertainty is to file for chapter 7 bankruptcy. The following are some of the signs a person may notice when it is time to hire a bankruptcy attorney to help them out.

The Bank Is About to Foreclose on a Home

For most people, buying a home is something they have dreamt about for years. If a person is unable to pay their mortgage due to a massive loss of income, it will usually result in the bank foreclosing. Filing chapter 7 bankruptcy before a foreclosure happens is essential.

By filing for bankruptcy, a person can stop the foreclosure proceedings while they get all of the debt sorted out. If a person does not intend to stay in the home, they will need to let the bank sell the foreclosed residence. The money from the sale of a foreclosed home will go towards the balance a person owes the bank.

Impending Eviction From a Rental Property

If a person is renting a home and is about to be evicted from non-payment of their rent, filing for bankruptcy can also buy a person some time. However, if the landlord has already received an eviction order from the court, then filing for bankruptcy will not help. The only way to figure out what can be done in situations like this is by consulting with a lawyer.

Going in for a few consultations with lawyers in an area is a must. During these consultations, a person will be able to figure out what their rights are in situations like this.

Be Aware of the Means Test

When trying to file for bankruptcy, a person will have to submit to a means test. This is a test of a person’s income to determine whether or not they can file bankruptcy. Generally, the lower a person’s income is, the easier they will find it to file for bankruptcy.

With the help of an experienced lawyer, an individual will have no problem getting their bankruptcy filing started. Looking for a fresh start? If so, contact John Henderson Law today to find out how they can help.

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