Bankruptcy is a legal process that provides you relief from your debts that you are struggling to pay back. But before you even consider filing, you must determine if you qualify for bankruptcy. Follow along to learn the common signs to look out for and how an experienced Suffern New York bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq. can help you in assessing your financial situation and your legal options.
Do I qualify for bankruptcy in New York State?
When evaluating your financial situation, you should take note of warning signs that point to bankruptcy. In other words, you qualify for bankruptcy if you find yourself in any of the following circumstances:
- You are being denied additional credit.
- Your credit cards are being declined.
- You have more than two major credit cards.
- You have no emergency fund money.
- You spend more than 20 percent of your net income on your credit card bills.
- You use your savings and/or retirement accounts to pay for your monthly expenses.
- Your bills are overdue.
- Your checks are being bounced.
- You are receiving consistent collection calls from creditors.
- You require a co-signer to obtain a loan.
- You are charged with high-interest rates when you borrow money.
- You are financially dependent on your loved ones.
- You do not understand your debts.
- You find the need to pay for necessities (i.e., groceries) with your credit card.
- You find the need to pawn your valuable possessions.
- You find the need to hide purchases from your spouse or other loved ones.
If any of these warning signs are applicable to you, it is important that you retain the services of a skilled Rockland County bankruptcy attorney as immediately as possible. Our team will provide you with a greater understanding of your situation.
If I qualify for bankruptcy, what should I know before filing?
A critical note to keep in mind is that you will not go to jail if you choose to file for bankruptcy. In fact, bankruptcy is completely legal and it may just be the best path for you to get out of debt. Additionally, you should not fear that you will lose your home. This is because when you file, a hold will be placed to prevent creditors from collecting anything. And lastly, even though your credit may hurt for a period of time, you will soon be able to get credit moving forward.
Contact our experienced New York firm
If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options.