It is not an easy task to file for bankruptcy. The major reason is that people may feel embarrassed and worried about how it will affect their social image, professional life and other aspects of life. It is significant to learn about the entire process because it will make you more aware and help you clarify your doubts. To understand all of these, you should get in touch with professionals like Benenati Law Firm, who have been in this business for years and have acquired immense knowledge and experience.
When to take the decision?
You should know when things are going out of your hands and you should file for bankruptcy. Some of the scenarios have been elaborated below:
Unable to pay credit card bills
The key is to know that you are making less than you owe. If you are unable to pay one or more credit card bills, it is time to file for bankruptcy. You can understand your situation well from the fact that you cannot even pay the minimum amount on your credit card bills. This may be the worst financial condition for you.
All limits of credit cards have been maxed out
If you have been using credit cards for daily expenses, you may not be earning enough to meet your financial needs. In such a scenario, all the maximum limits on your credit cards will be utilized within a month or two. You still have bills to pay and you don’t have money to do so. This is a clear sign that you must consider bankruptcy the last nailfits resort.
Missed installments on mortgages
We might experience that missed EMIs once or twice in our lifetime but if you have more than two, you must tab your expenses and earnings. If this happens on a consistent basis, you will have to file for bankruptcy because you will have to pay penalties such as late payments and higher interest due to missed EMIs. If your financial condition is not good, you may not be able to pay them, which will result in bankruptcy.
You are about to lose your home
Being unable to pay for your home loan may be the reason to lose your home. If you are on the verge of losing it because of the non-payment, you must factsmaniya talk to a bankruptcy lawyer.
Bankruptcy can be depressing but it will give you a chance to restart your life.