man considering bankruptcy

5 Signs You May Want to Consider Filing for Bankruptcy

No matter how hard you try to always plan ahead and do the right thing, life can still be messy and unpredictable. The smallest financial setback an put you in a situation in which you are unable to pay off your debts. Many people live paycheck to paycheck, leaving them vulnerable to losing their property if things take a turn. Even those who manage to save money can easily exhaust these savings. As a result, many people are even afraid to pick up the phone fearing that a creditor is on the other end. Those who find themselves in any of these situations may be questioning whether or not it’s time to file for bankruptcy. If you are unsure, here are 5 signs that you may want to consider:

5 Signs You May Want to Consider Bankruptcy

1. Your auto lender has threatened repossession of your vehicle.

Your vehicle can be repossessed if you miss payments on your auto loan. If your vehicle is repossessed and you lose your mode of transportation, it can leave you unable to get to work and make any money. Consequently, if your auto lender is threatening to repossess your vehicle, you may want to consider filing for bankruptcy. Speaking with a bankruptcy attorney can help you find out your options.

2. Your income leaves you without the funds to pay off your debts

When you have debts to pay off, it’s important that you do so every month in a timely manner. When you fail to make a monthly payment, you will be hit with a late fee. If you find yourself in a situation in which you must skip your monthly payment, it may be time to consider filing for bankruptcy. The longer you go without making a payment, the more interest and late fees you will have, only making the situation that much worse. 

3. The IRS or Texas Department of Review is threatening to seize any of your assets.

If you owe back taxes and don’t set up an agreement to pay, the IRS can seize your property (e.g. levy your wages). While true property seizures are usually only for the worst cases, such as fraud or hiding assets, it can happen and you should consider filing for bankruptcy.

4. You are receiving frequent phone calls or lawsuits from your creditors.

If you find yourself receiving frequent phone calls or lawsuits from your creditors or collection agencies, it may be time to consider filing for bankruptcy. The next step is to call a qualified bankruptcy attorney.

5. Your home may be foreclosed upon. 

If you are behind on your mortgage and facing foreclosure on your home, it may be time to consider filing for bankruptcy. Chapter 13 bankruptcy can stop the foreclosure and may provide you additional time to catch up the missed payments.  It can also help you restructure your other debts, which, in turn, could further help straighten out your budget. 

Toronjo & Prosser Law Helps Those Who Are Dealing with Bankruptcy 

It’s undoubtedly stressful to realize that you don’t have enough money, and even more stressful when you realize that filing for bankruptcy may be your best option. That’s why it’s so important to consult with a knowledgeable and experienced Dallas bankruptcy attorney. At Toronjo & Prosser, our qualified Dallas Bankruptcy Attorneys can help you to navigate the process. To learn more or to schedule a free consultation contact us online or call us today!