How will I know when I need to file bankruptcy?

You will be overwhelmed by debt and unable to reduce your debts at a reasonable pace.  You may have lawsuits filed against you, and garnishments against your wages, tax refunds, and even bank accounts. Your assets may be threatened with seizure. You may have a lien against your house. Creditors will be calling regularly, and you will not have the means to satisfy them. Here are three levels of financial stress at which you should at least be considering bankruptcy:


It is time to trim expenses, negotiate with creditors, and start thinking about bankruptcy if you:

— Only pay some bills each month and wait to pay others

— Receive calls from collection agencies

— Do not have health insurance

— Have little or no savings

— Have been out of work for a month or more


Unless you can quickly remedy the situation, plan to file bankruptcy if you:

— Are behind two or more months on your payments for two or more debts

— Have lawsuits pending for unpaid accounts

— Owe taxes you cannot pay

— Have been out of work for three or more months

— Are using new credit cards to pay the minimums on old credit cards

— Have high medical bills not covered by insurance


File for bankruptcy immediately if your:

— Wages have been garnished

— Bank account has been attached

— Home is set for a foreclosure sale

— Car has been or is about to be repossessed

— Unemployment benefits are ending


You need not wait until these disasters happen. If you see them looming ahead, you are better off filing for bankruptcy earlier than later. You will preserve more assets and your credit record will be more easily repaired. Contact an experience Florida bankruptcy attorney today.