Chicago Bankruptcy Question: How do I know it is time to file?

Today's Chicago Bankruptcy Question of the Day:  How do I know it is time to file?   Deciding whether or not it is time to file for bankruptcy is an important decision that should not be taken lightly.  Most people in serious debt honestly believe that they will be able to fight their way out of it, given enough time and some positive change in their circumstances.  Most people in serious debt cannot do so.  There are, however, clear warning signs that should trigger you to at least meet with a Chicago bankruptcy attorney and review your options:

You receive a summons:  Whether it's a foreclosure summons or a collection lawsuit, a summons is a sure sign that you should meet with a bankruptcy lawyer to review your options.  If you ignore the summons, your creditor may be able to take serious action against you, including, but not limited to foreclosing on your home, garnishing your wages and seizing your bank accounts.

You are receiving creditor calls because you are behind on your bills:  If you have stopped answering your phone because most of the calls are collectors, it's time to contact a bankruptcy attorney.  Even if bankruptcy is not your best option, an experienced attorney can stop the calls and put you on the path to get out of debt.

You are paying your monthly expenses with credit cards:  If you have gotten to the point where you are using most or all of your disposable income to pay your debt, then using your credit cards to pay your monthly bills, you are in the downward spiral.  Save your money, meet with a bankruptcy lawyer and get out of debt instead of deeper in it.

You have stopped saving, or worse, are picking which bills to pay each month:  The general rule is that you should be able to save 10% of your paycheck.  If you are at the point where you have stopped saving entirely, then you have no option but to go deeper in debt when the car breaks down, furnace goes out, you're taken to the hospital, etc.  It will get to the point, if it has not already, where you are forced to pick and choose which bills you can pay each month and which you can put off.  If you are in this position, you should meet with a bankruptcy attorney and review your options.

You are living in fear of creditor action:  Living in fear that a creditor will foreclose on your home, repossess your vehicle, garnish your wages, freeze your bank accounts or take other action is a terrible way to live.  Meeting with an experienced bankruptcy lawyer can eliminate this fear, removing this stress and allowing you to again sleep at night.

If any of these scenarios are all too familiar, it's time to take action.  You can call the experienced bankruptcy attorneys at Ledford & Wu, schedule a free consultation and learn what options you have.  You will feel better having spoken to a bankruptcy professional.

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