If you have gotten behind on credit card bills or your mortgage when does it make sense to file a bankruptcy? Unless you are expecting a large lump sum of money in the near future you should be thinking about doing a bankruptcy at this point.
As you well know by now if you miss the monthly payments on a couple of credit cards the interest rate will zoom up. Then the other cards you hold will also increase their rates. Then they add in late fees and when this all goes over your credit limit they will add on over limit fees.
The reasons bankruptcy is cheaper are simple – once you are unable to pay the monthly fees the creditor can sue you. After they sue you and are granted a judgment they have three ways to collect. They can garnish your wages (make your employer pay them before your employer pays you), put a lien on any real property that you own or take money out of any bank account that has your name on it. (even if it is really belongs to somebody else). This of course creates a lot of problems in your day to day living.
A bankruptcy filing (chapter 7 or 13) will stop all of the creditors from trying to collect whether they have started to sue you or if they already have judgments. This will enable you to spend your money on necessities.
If you have any questions contact the
Law Offices of Gregg W. Wagman at:
70 Howard Street Suite C
New London, CT 06320
Serving the Eastern Connecticut region including the Northeastern towns of Thompson, Putnam,
Brooklyn, Colchester, Willimantic, Marlborough, Lebanon and Plainfield and the Southeastern towns of Old Saybrook, Old Lyme,East Lyme,Waterford, New London, Groton, Salem, Ledyard, Montville, Mystic, Norwich, Voluntown, Preston, Stonington, North Stonington and New London