The Bankruptcy Option—Your Friend When Debt Becomes Insurmountable

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The Bankruptcy Option—Your Friend When Debt Becomes Insurmountable


September 30, 2015

Walking down any street in America you’ll likely pass one or several homeless people. Some people might choose to put a few dollars in their cup, while others may simply be at capacity already dealing with their own problems and may forge ahead without considering the homeless person. It’s hard to know what’s going on in anyone’s life when you don’t know them, but one thing we do know is that homelessness is a terrible situation for those who suffer within it. Another thing we know statistically but may be afraid to acknowledge—insurmountable debt can lead to bankruptcy and bankruptcy can, and often does, lead to homelessness. So while we may have a job today, and feel like homelessness could never happen to us, it does happen. The fact is, most Americans live from paycheck to paycheck, and it only takes a few missed paychecks before debts begin to mount, creditors begin to call, and before you know it—you’re looking at bankruptcy as an option to find relief and salvage your life.

While the aforementioned sounds grim, and we admit it’s better to be liquid than to be bankrupt, bankruptcy itself is not always a bad thing. On the contrary, bankruptcy can be a very good option if you are falling deep into debt and see no way out. When you’re thinking about your financial situation, you need to consider it from all angles, and think about your current situation as well as your future. A Chicago bankruptcy attorney can help you analyze your debts and think through all your financial options.

When considering your financial status and its prognosis, it’s important to consider the big ticket items, and the major issues.

Let’s look at a few. For many people who are swimming in debt, first and foremost, they worry about foreclosure. If your debt situation has become so dire that foreclosure is nearly imminent, you need to talk with your Chicago bankruptcy attorney about the bankruptcy option. If you have earned a significant amount of equity in your home, you may want to take steps to save it. And if you’re behind on your mortgage to the extent that your lender has already notified you about a potential foreclosure, a bankruptcy filing can stop the process before the sale of your home. This won’t save your home, but it will buy you some extra time to catch up with your payments on your own, or seek financial assistance from a family member or trusted long time friend. While asking for money is never easy, you’ll have to weigh the pros and cons. Is it better to ask and potentially save your family’s home, or not, and save your pride? This is a question only you can answer, but the bottom line is that a bankruptcy can buy you a bit more time to figure out what you want to do. And even if you decide to let your home go to foreclosure, the bankruptcy will have allowed you time to make peace with that decision, in addition to offering you financial relief in many other areas of your life as well.

The loss of one’s home is typically the biggest concern people have when they fall deeply into debt, but there are other times as well that bankruptcy may become a good option such as:

When Creditors Have Begun to Garnish Your Wages

If your wages are being garnished by a creditor or multiple creditors, you may be in jeopardy of financial ruin in other areas of your life as well. If your paycheck is already committed to paying your mortgage, your kid’s health insurance, your car payment, and your groceries, and you have nothing much left over, then a wage garnishment is going to cause a serious hardship in your life. Obviously, payments that are needed to care of your family and their health are going to be a higher priority for you than making a payment to a Fortune 500 credit company or bank, so don’t sacrifice your family’s wellbeing, bring us on board to help you help yourself. As a top Chicago bankruptcy attorney we can help you analyze your entire financial life and make smart choices that will positively impact your future, and bankruptcy may prove to be one of those smart choices.

When Creditors Have Sought to Freeze Your Bank Funds

Obviously, if creditors have found a legal means to freeze your bank funds, then you know it’s time to take legal action of your own. When someone, or some institution, is controlling your finances, then clearly you are not in control, and you need to be in control of your own financial destiny. Call a Chicago bankruptcy attorney right away in this case, and take back control.

When You Have Been Sued for Debt

Of course, if you have already been sued for debt then you have no reasonable options other than bringing a Chicago bankruptcy attorney on board immediately. A bankruptcy attorney can help negotiate the terms, potentially what you owe, and help to bring some order to your financial life such that you can find relief.

The Bottom Line

When you are facing a mountain of debt and considering bankruptcy, you need to choose a bankruptcy attorney who understands the laws backwards and forwards, but also one with whom you can relate. You need an attorney who is not only savvy and experienced, but also compassionate. When you’re looking for the right Chicago bankruptcy attorney consider your options carefully and choose the best attorney you can retain.

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About the Author

Robert J. Adams & Associates is a full-service law firm where attorneys with their extensive experience provide effective representation in Bankruptcy cases in Illinois.