11 Signs That You May Need to Consider Filing Bankruptcy in Michigan

If one or more of the below circumstances is true for you, it may be time to talk to a professional about the best option for you to resolve your debts.  You owe it to yourself to explore your options for a better financial future.  We offer free consultations to discuss Chapter 13 debt consolidation, Chapter 7 debt elimination or non-bankruptcy debt settlements.  Call us at 866-261-8282 or you may set up a consultation time online.Here are some of the common signs:

1.       You have more money going out each month than coming in.

If you don't have enough household income coming in to cover your monthly living expenses and outstanding debts, you need to consider a debt resolution plan or find a source of additional income to balance your budget.  Waiting won't bring resolutions; it will just put you further in debt and further diminish your credit score.

2.       You are paying high interest rates (i.e. over 10%) on your unsecured debts.

High interest rates may mean that you are accumulating more debt each month versus making headway to pay the debt down.  If you are paying the monthly minimums, it may mean your total debt load is growing each month.  Use our Credit Card Calculator to take an assessment of your current situation.  If your  goal is to become debt free, we can help and it is achievable within 5 months of filing a Chapter 7 bankruptcy  or 36-60 months using a Chapter 13 reorganization.

3.       You are behind on your mortgage payments, facing a foreclosure, or you are flooded with other debts such that you anticipate having difficulty maintaining your monthly payments in the near future.

We can legally stop a foreclosure sale before it occurs and help you to set up a reasonable repayment plan with your mortgage company.  We can also defer and reduce unsecured debts (i.e. credit cards, medical bills, etc.) in order to give you more room in your budget to pay your mortgage.  Don't lose your home because you are struggling to juggle too much debt.

4.       You have a second mortgage or home equity loan on your home and the home is not worth what you owe on it.

Did you know that you can legally remove a secondary lien on your property through a Chapter 13 Debt Consolidation program?  At the completion of the repayment plan, the lien is legally removed from your property; you only owe the balance on the first mortgage.  Click to see an example of a Chapter 13 plan and possible savings scenario.

5.       You are behind on your vehicle payments, facing or recently experienced vehicle repossession and/or are paying a high rate of interest (i.e. over 10%) on your automobile loan.

We can legally stop a vehicle repossession or get your vehicle back before it is sold at auction.   Through the Chapter 13 process we can also lower your interest rate to a reasonable market rate.  If you have owned your vehicle for more than 2.5 years, we can actually reduce the principal amount that you owe on the vehicle to its current fair market value (i.e. Kelly Blue Book).

6.       You have a pending or active judgment or garnishment.

If you are a facing a judgment or wage garnishment, now is the time to resolve it.  If your creditor has gone through the effort to get a judgment, they are serious about collecting on the debt and will likely pursue a garnishment.  Garnishments come in various forms (your whole bank account, 25% of your net pay, or your entire  state tax refund) and can have a devastating effect on your budget based on the sudden loss of income.  Judgments can also be renewed every ten years until the debt is satisfied.  The longer the debt stays on your credit the longer the negative impact will continue to effect your credit.  Don't wait until your creditor creates a crisis.

7.       Your credit score is prohibiting you from gaining new credit sources or making purchases.

If you are being denied new credit or having trouble purchasing a home or buying a vehicle, now is the time to resolve your debt issues  to get in good credit standing for the future.  By consolidating and reducing your debt through a Chapter 13 reorganization, you will positively affect 65% of your credit score (according to FICO):  improving your debt-to-income ratio and recent payment history.  This form of bankruptcy is designed you help you to improve your credit score.  By filing a Chapter 7 debt elimination program you wipe the "credit slate" clean allowing you begin rebuilding your credit.  Since your debt-to-income ratio has been corrected, creditors are more likely extend you new credit as you are less likely to default.

8.       Your debt is growing each month based on accrued interest charges or additional spending.

If you are moving further into the red each month, things are not going to get better on there own.  Take action and control of your budget by reducing, consolidating or settling your debts to create a more stable financial future.

9.       If you are considering dipping into your retirement savings (qualified IRA) to pay or maintain your monthly bills.

Don't jeopardize your future by spending tomorrow's dollars on today's expenses.  Consider that when that well runs dry, you will still be left with the same unmanageable budget, just without a future savings cushion.  In addition, drawing early from your retirement savings can have hefty tax consequences.  If you current budget is unbalanced, find a solution to bring it in balance versus a Band-Aid solution of borrowing from your future.  Be assured that qualified retirement savings are protected under bankruptcy.

10.   If you are getting harassing creditor calls or are receiving threatening collection letters.

Are you afraid to answer the phone½.worried when you are sorting through your mail?  Stop the stress of creditor collections by resolving the debt once and for all.  Once you file a Chapter 7 or Chapter 13, you are immediately protected from any contact by your creditors. We take it from there.

11.   If you have IRS tax debt that you cannot reasonably afford to pay off.

Do you have old or recent tax debts that are keeping you awake at night?  The good news it that certain older tax debts can be eliminated in a Chapter 7 or reorganized and likely reduced at 0% interest in a Chapter 13 reorganization plan.  More recent tax debts can be consolidated at a zero interest under a Chapter 13 plan along with other debts without the threat of government action or seizure.

  As is evident, there are many circumstances in which bankruptcy is an optimal solution to bring legal and lasting closure to unpleasant circumstances and nagging debts.  Explore you personal options with one of our licensed attorneys during a free consultation.  We have convenient office locations and evening and weekend hours to help you find debt resolution.   Call us today at 866-261-8282 as your first step to financial freedom.