When should you consider filing for bankruptcy?

When you fall behind on paying your bills, it can quickly lead to an overwhelming accumulation of debt. Past-due balances, defaulted loans and missed payments are not only stressful, but they can also lead to other unpleasant consequences, such as debt collection efforts. Alabama consumers may find themselves subjected to penalties like wage garnishment, the threat of foreclosure and more.

At this point, bankruptcy could be a reasonable and beneficial option for your consideration. This process allows you to address some types of debt once and for all, as you will be able to take certain steps to reclaim your financial security. Not everyone with debt is eligible for bankruptcy, however, and potential applicants will want to learn more about eligibility requirements and other aspects of this process before proceeding.

The right step for you

Bankruptcy may be the next step for you if the following apply to both your current financial circumstances and future projections:

• You have already taken steps to reduce your debt and improve your financial situation. This includes reducing spending, negotiating with creditors and working to pay off some of your balances.
• Your current liabilities far outweigh your assets and income. Even with your regular paycheck and other efforts to catch up, you do not anticipate being able to make a meaningful difference in your current balances.
• You are facing threats of certain types of intrusive debt collection methods, including garnishment of your paycheck, confiscation of property bought on credit, foreclosure of your home and more.

If any of these apply to your situation, you may then find it beneficial to seek an assessment of your case to better understand the specific bankruptcy options available to you. Most consumers apply for either Chapter 7 or Chapter 13 bankruptcy, but the best choice depends on the details of your individual situation.

Seeking a better financial future

Bankruptcy may not be your first choice, but it could be the best choice available to you. This legal process could offer you a way to deal with certain balances and emerge to a better financial future.

Attorney Brad Hawley

Attorney Brad Hawley possesses years of practical experience focused on bankruptcy, civil and criminal defense. He has prosecuted and defended clients in state court, and is a former enlisted member of the United States Army. Brad is driven by his desire to help people that have been hurt by the legal system, and is dedicated to fixing injustices he sees around him. [ Attorney Bio ]