Law & Legal & Attorney Bankruptcy & consumer credit

When to Know It's Time to File for Bankruptcy

Filing for bankruptcy in Tacoma necessitates both doing thorough research and talking with an attorney that can give you essential information about the deadlines and overall timeline that you can expect the procedure to follow. This article will give you information about when you can know it's time to file for bankruptcy and how it can help you get your life back on track.

Creditors Calling and Harassing You

One of the worst parts of being in debt is having creditors call and ask you for money. Once creditors have your email, address, and phone number, the onslaught of communication can be overwhelming. Creditors want to put you in a corner and make you so uncomfortable that you will feel forced to strike a deal with them. Often, these deals might not be beneficial to you or feasible. Creditors only have one interest in mind: getting paid. This is one reason why consulting with attorneys and credit counselors is a good idea. You can get a better understanding of what you need to do to pay off your creditors and how these payments can improve your ruined credit. If you do research and find out that you simply can't afford to make payments to keep your creditors from calling you, you are probably in a position where you need to file for Chapter 7 or Chapter 13 bankruptcy.

Creditors Putting Garnishments on Your Wages

Another tactic that creditors use to get money that you owe them is to put garnishments on your wages. These garnishments may make it impossible to feed and keep your family healthy. You might have so many expenses that you are unable to meet all of your creditors' demands, essentially creating a negative feedback loop where you are unable to climb out of the hole of debt that keeps getting deeper. It's in no one's interest to keep hardworking people in an impossible amount of debt. This hurts the economy and creates desperate people that can't keep their homes or vehicles. Having multiple garnishments on your wages can make living impossible, so the bankruptcy system has been set up. Wiping away the creditors' attempts to collect and getting a fresh slate can make you better able to be a productive member of society and support your family. Bankruptcy will end wage garnishments and either set up a repayment plan or wipe the slate completely clean and hit your credit score for an agreed period of time, usually 10 years.

Your Credit Score Is Already Low

It might be time to think about filing for bankruptcy in Tacoma if you already have low credit and having a lower score would not impact your day-to-day life anymore. In a low credit range, the interest rates for car and home loans will always be high. A bankruptcy will make your credit worse, but can give you extra income from wage garnishments and paying low minimum credit card payments that can increase your standard of living and make it possible to pay cash for a used vehicle or other expenses that you might need to work and live well. Make sure to talk with an attorney to see about whether your already-low credit will be that impacted by a bankruptcy.


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