Life during the holiday season can be stressful. The strain on your budget can be a tipping point for bankruptcy if your finances are out of control. Bankruptcy can help you make a fresh start. Knowing when it is time to start the filing process is crucial because it can affect you for a long time if you have failed to exercise other options. Here are the top three signs that indicate you may need to contact an attorney to file bankruptcy.
Mismanaged Credit Card Use
During the holidays, it can be easy to mismanage or max out your credit cards. Credit cards are meant to be used during emergencies, not for basic necessities or luxury items or gifts. If you are unable to pay your monthly credit card payments, it may be a sign you need to file for bankruptcy in order to get out of debt.
If you are falling behind on your mortgage payments or property taxes, you may face a foreclosure on your home. You may not be eligible for loan consolidation or to take out a home equity loan to help combat the debt. Filing for bankruptcy can buy you time to get your finances under control and keep you from becoming homeless. You may need to act quickly if the foreclosure is in the near future.
IRS Seizure Threat
The IRS can threaten to seize your income or other assets for repayment of back taxes. Only certain types of IRS debt and specific circumstances may be eligible for a debt discharge through a bankruptcy filing. The back taxes must be a federal or state income tax debt from a tax return at least three years old that was not filed fraudulently. Tax evasion can also make you ineligible for bankruptcy relief. A tax lien placed on your property will still remain even if you file for bankruptcy.
Experienced Georgia Bankruptcy Legal Representation
Filing for bankruptcy can be a time-consuming and complicated process. The attorneys at Plunkett, Hamilton, Manton & Graves, LLP can review your specific situation and determine the next steps you need to take back control over your finances. Request a consultation to discuss your case today.
Posted on behalf of