Financial distress is when you are in a financial crisis. It's when you may not be able to pay your bills and may only be barely able to keep yourself fed and clothed and with a roof over your head. If you are in a financial crisis and are unable to pay your bills, you may qualify for bankruptcy so you can get out of debt and prevent complete financial ruin. Read on for a few signs that may indicate you are in a financial crisis.
1. You Are Borrowing Money
If you're borrowing money, whether it's from family members, friends, or a check advancement company, you may be in a troubling financial situation. If you can't even make it to your next paycheck and survive, you are in a scary financial situation and need to find a way out. Your financial situation can be resolved by filing for bankruptcy, which can wipe out your debts and loans that you may not be able to afford.
2. Your Wages Are Being Garnished
If your wages are being garnished by one or more of your creditors and you don't have enough money left over to afford to live, you need to file for bankruptcy. You may not be able to include all of your wage garnishments in your bankruptcy. For instance, garnishments for unpaid child support or for unpaid taxes may not be included. These types of garnishments are usually required to be repaid, although a lower payment may be able to be negotiated. Other garnishments that you may have, such as payments from unpaid loans or small claims garnishments, may be included in a bankruptcy, although this is ultimately up to the bankruptcy trustee.
3. Your Home Is In Foreclosure
If your home is in foreclosure and you are facing losing your home, you should consider filing for bankruptcy. Losing a home to foreclosure can be difficult, and the bank is going to want their money for it. You may be able to sell your home for some quick income if you have a lot of equity in it, or, if you can afford it after the bankruptcy, you may be able to keep your home and continue to make payments on it.
If you are in a bad financial situation and there is no way out of it on your own, you should talk to a bankruptcy attorney about filing for bankruptcy. Bankruptcy may be your only answer to get you out of debt. Make an appointment with a bankruptcy attorney today to discuss your options.Share