What Are Warning Signs that I Should File for Bankruptcy?

Filing for bankruptcy might just be the best financial decision you ever make. However, this is only the case if it is well suited for your specific financial standing. Follow along to understand the warning signs that you should file for bankruptcy and how a proficient Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq. can help you pick up on them from early on.

Are there warning signs that I should file for bankruptcy?

First of all, just because you are experiencing a temporary strain in your finances does not necessarily mean you should file for bankruptcy. This should only be a consideration in extreme circumstances or emergencies, such as the following:

  • Your received notice that your house may be foreclosed.
  • You received a warrant for your eviction.
  • You received notice that your bank account is restrained.

That said, below are some early warning signs that you should file for bankruptcy before it is too late:

  • A creditor(s) has obtained judgments against you.
  • Your bank account has been frozen.
  • Your personal wages have been garnished.
  • It is beyond your immediate ability to pay down your bills.

Are there ways to prepare to file for bankruptcy?

To go the extra mile in ensuring that filing for bankruptcy is the best financial move for you to make, you should assess your full financial situation. You can do so in the following ways:

  • Review your income, debt, and credit reports.
  • Open all of your mail to confirm who is filing a lawsuit, foreclosure, or collection action against you and for how much.

Am I expected to pay anything after I file for bankruptcy?

In the event that you file for bankruptcy, some of your debts may be discharged. This means that you will no longer be required to pay off these debts and that the creditor will no longer be able to come after you for payments. Examples of dischargeable debts are as follows:

  • Medical bills.
  • Credit card debt.
  • Past-due utility bills.

On the other hand, there are non-dischargeable debts that still need to be paid off. However, certain ones may become discharged if a creditor does not challenge them. Examples of non-dischargeable debts are as follows:

  • Child support payments.
  • Alimony payments.
  • Student loans.
  • Certain types of taxes.
  • Fraud debts.
  • Fines owed to a government agency.
  • Civil judgments.
  • Criminal restitution.
  • Attorney fees.

If you still require assistance with weighing the pros and cons of filing for bankruptcy, then you should consult with a talented Rockland County bankruptcy attorney at your earliest convenience.

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.