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Choosing to file for bankruptcy is never easy. In fact, it sometimes takes years of hardship to come to the inevitable conclusion that your best shot at freedom – a fresh start – is to take the leap.

But how do you know if the time is right?

Here are the most common signs that it may be time to for bankruptcy.

#1: Debt Collectors Have Come Knocking

If you fail to repay your debts in a timely manner, your account will eventually be turned over to a collection agency. Failing to respond to a collection agency could result in numerous calls and letters, damage to your credit score, and (at some point) a lawsuit. If you lose this lawsuit, you’ll owe more than you did before.

When you file for bankruptcy, you’ll get legal protection against debt collectors in the form of an automatic stay – which means the collector cannot take action against you until your bankruptcy case has been discharged or dismissed.

#2: You Can’t Pay Your Bills

Are you stuck using credit cards to pay the bills? Do you find yourself going further and further in debt on a weekly or monthly basis? When you no longer have enough sustainable income to survive, filing for bankruptcy has become a necessity.

#3: Your Income Is Being Garnished

There are serious penalties when you fail to pay debt collectors. Because collectors rarely get paid through lawsuits, they sometimes decide to request an income garnishment instead.

If a court order for such a garnishment is provided, your employer will be required to hold money from your check until your debt has been repaid. This can make it impossible to pay bills and minimum payments for other debts.

#4: You Feel Scared, Frustrated, or Depressed

There are many reasons to file for bankruptcy. The most compelling reason, however, is peace of mind. Finally, you’ll know exactly how much you owe. You’ll have enough money to pay your bills. And you won’t be trapped in a downward spiral. This will improve your mood, your relationship with friends and family, and your financial well-being.

#5: You’ve Lost Track of How Much You Owe

It happens slowly. One credit card payment turns into two. Two payments turn into four. You’ve lost track of login information and receipts. Now, your expendable money is gone and you have no idea how much you actually owe.

Instead of letting this spiral continue, consider filing for bankruptcy. Some forms of bankruptcy forgive unsecured debt, freeing you from the bonds of your credit cards.

Contact an Experienced Colorado Bankruptcy Attorney for Assistance

If you’re thinking about filing for bankruptcy, contact an experienced Colorado bankruptcy attorney at Kinnaird Law by calling (719)-520-0003. We recognize the intensity of your decision and admire your courage, and will collect essential paperwork, answer questions, and simplify the process. Our team is fully dedicated to your financial and emotional well-being, so that you have the time to focus on what matters most.

Choosing to file for bankruptcy can sometimes feel like admitting defeat. However, the benefits resulting from chapter 7 bankruptcy can also mean a fresh start – leaving you with the opportunity to do better this time around.

If you’ve decided to file for bankruptcy, contact a Colorado bankruptcy attorney at Kinnaird & Kinnaird for representation. We have years of experience in bankruptcy law. Our team is determined to guide you through this process as smoothly and painlessly as possible. Call our office at (719) 520-0003.

There are benefits and drawbacks to all forms of bankruptcy. Some factors to consider before filing under chapter 7 include:

Pro: Fast Relief

 After successfully filing for bankruptcy, you’ll see total relief within six months on all unsecured debts.

 Con: Lasting Credit Damage

 Filing for bankruptcy will destroy your credit score, staying on your report for nearly a decade. However, you’ll have an easier time explaining bankruptcy to a potential lender than years of missed payments, defaults, repossessions, and lawsuits.

 Pro: Eligibility

 To file under chapter 7, you must not:

  • Have much disposable income
  • Have filed for bankruptcy in the past six years
  • Have violated a court order

Since most individuals, businesses, and entities meet these requirements during tough times, filing successfully shouldn’t prove difficult with the assistance of an experienced attorney. 

Con: You May Lose Your Property 

During the bankruptcy process, you may lose property that isn’t exempt for sale by the trustee of your account. This includes luxury possessions like boats, campers, and automobiles. However, most state exemptions will leave you with more than enough property. In addition, you won’t have to worry about your wages or property being taken by lenders after you’ve filed.

Pro: Unlimited Potential 

Assuming you don’t owe money on the debts that survive bankruptcy, the amount a court will forgive is potentially unlimited. If you have hundreds of thousands of dollars in credit card debt, filing for bankruptcy could change your life, whether it hurts your credit score or not. 

Con: Some Things Aren’t Covered

There is some debts bankruptcy won’t cover. These include your mortgage lien, alimony, and child support. Speak to an experienced bankruptcy attorney before making the decision to file. Otherwise, you might end up with less relief than you expected.

Contact an Experienced Colorado Bankruptcy Attorney for Representation

There are few decisions more difficult than choosing to file for bankruptcy. To make a stressful process less taxing, trust a professional for assistance. 

If you’ve decided to file for bankruptcy, contact an experienced Colorado bankruptcy attorney at Kinnaird Law by calling (719) 520-0003. Our team will organize deadlines, collect essential information, and focus on what matters most – your well-being.

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