Press on Regardless! Five Signs You Might Need to Talk with a Bankruptcy Attorney
Tampa bankruptcy court is a federal court in the Middle District of Florida which runs from Jacksonville in the north, through Orlando, Tampa all the way down to Fort Myers in the south. Tampa and the other Middle District bankruptcy courts are among the busiest in the United States. The thousands of bankruptcy cases filed each year were all necessary for different reasons including medical, divorce, job loss, business failure and overwhelming credit card debt to name just a few. Many bankruptcy cases share something in common, in that there were signs of trouble that eventually led to a meeting with a bankruptcy attorney to discuss ways to improve the individual’s or family’s financial situation. The more of the following signs you see in your finances, the more likely it is that talking with a bankruptcy attorney will help get your fiscal house in order and your life back on track.
Sign No. 1 – You Changed Your Income Tax Withholding at Work: Employees tell their employers how many dependents to use in calculating how much to take out of their paychecks for federal taxes each pay period. Frequently, individuals who begin to feel the pressure of mounting debt, increase the number of exemptions they claim so their employer will take less money out of their check and give them more money to use to pay down their debt. While this strategy might work a little in the short term, they may create an even more significant problem in a tax debt owed to the U.S. Treasury. It could be one step forward and two steps back. Meeting with an attorney can make this a more comfortable situation to deal with before it gets out of hand.
Sign No. 2 – You Paid Credit Card Minimums to Charge Necessities: Some people facing a financial crisis use credit cards to cover gaps in income by purchasing gas, food, rent and other necessities while paying the minimum payment due on the credit card balance. The increasing card balance also increases the minimum amount due, which then continues the individual having less cash available to cover the usual living expenses and to keep the credit card account active as well. Sooner or later a different strategy must be used to lower monthly household obligations. Talking with an attorney who can guide you through the maze of options can be the best free resource for available information.
Sign No. 3 – You Borrowed Money to Pay Off Your Debts: Some people overwhelmed by multiple debts they cannot pay turn to new lenders. Debt consolidation loans are attractive; however, they may not always be in the best interests of the debt consumer. Besides freeing up some space to afford even more debt, if you use your house or your car as collateral for the debt consolidation loan, you could lose that property if you default on the loan payments. Many credit unions cross collateralize between debt consolidation loans and car loans. If you default on the credit union’s debt consolidation loan, the credit union could repossess your car even if the car loan payments are current. Other, not so good sources of new loans include friends, relatives, high-interest payday loans, and retirement account loans. While 401K and 403b loans are attractive to many, these types of loans become taxable if not paid back. So besides owing the government for taxes you didn’t plan on owing, you may not have enough money saved when it’s time to retire.
Sign No. 4 – You Don’t Want to Answer Your Phone or Get Your Mail: It’s often not one major event, but several smaller events that begin to snowball leaving one little time to recover before another event comes along. As new bills come in, the old bills fall behind, and then the phone calls and letters from creditors begin. The longer the situation continues, the sooner the letters start coming from collection attorneys threatening court action, followed by lawsuits, then garnishments and bank levies. Meeting with a bankruptcy attorney can help consumers decide how best to address an otherwise out of control situation.
Sign No. 5 – Your Stress Levels are Rapidly Increasing: Internal signs of financial stress include lack of sleep, being unable to focus on anything but debt and trying to come up with ways to pay it, stress-related health issues and increasing tensions with spouses, children, friends, and co-workers. Talking with a bankruptcy attorney to discuss ways to deal with financial stress and stop creditor actions that lead to additional stress, often improves the way an individual can cope with the other life stresses.
If you’re struggling with debt and are considering filing either a chapter 7 or chapter 13 bankruptcy, an experienced bankruptcy lawyer can help you weigh your legal options and evaluate the alternatives. Please call 813-308-9045 for a free and confidential case evaluation. And remember, whatever path you choose, Press on Regardless!
