New York bankruptcy feels like a major financial leap. There are risks to your credit score and financial future, and bankruptcy imposes plenty of restrictions and requirements on debtors that file in New York. Therefore, you want to be certain it is the right process for your financial situation. To help you determine if New York bankruptcy is a solution to your financial woes, look for one of these five signs.
#1: You’ve Spent Your Savings on Daily Expenses
During your years in the workforce, you should make a diligent effort to put aside savings. These savings are intended for future costs and expenses when you are older and unable to work. Most people in New York try to hold off spending their savings until after retirement. However, unexpected events happen, such as a serious injury or illness impact a large number of people in the state. In these times, it might be necessary to dip into your savings.
Spending a portion of your savings isn’t a crisis and may not be a big concern, but if all your savings are depleted because of daily costs, New York bankruptcy might be the answer. Why is this a serious sign that bankruptcy is the right choice? If you can’t cover regular financial obligations the bills will quickly pile up and these costs aren’t going away. You will continue to accrue more and more debt simply by going through your daily life.
#2: You Are Avoiding Phone Calls from Creditors or Collection Agencies
The first call from a creditor or collection agency is intimidating. Many New Yorkers are surprised or even confused to answer the phone and a demanding creditor is on the other end. If you continue to miss payments, then these calls become a regular occurrence. When you begin ignoring your phone, stop opening your mail, and move specific emails to span, it is time to consider bankruptcy.
Efforts to recover your debt are not going to cease. A creditor or collection agency is only going to become more aggressive over time, and frequently debtors begin to feel harassed and overwhelmed by collection calls. Eventually, a debt collector may sue for the delinquent payments. A New York bankruptcy places a hold on all collection calls and contact from creditors.
#3: You Are Behind on a Crucial Payment
It’s common to miss a credit card payment or one medical bill. Whether the invoice was lost in the mail or you had a one-time expense, a single delayed or delinquent payment isn’t a cause for bankruptcy. More than likely, you will pay a fee and return to current with that creditor, missing a key or crucial payment is different.
If you miss a payment for your mortgage or car loan, and you know this payment is going to remain outstanding, New York bankruptcy might be the answer. As well, if you know the same issue will occur the next month and the month after, it is certainly time to consider bankruptcy.
#4: You Might Lose Your Home to a New York Foreclosure
For most residents of Goshen, New York, the biggest monthly payment is a mortgage on their residential property. This is the payment that keeps a roof over your head and your family safe at night. Making the mortgage payment is a priority each and every month because if you are behind on your mortgage, the bank could foreclose on your home.
If a New York foreclosure from missed payments is a possibility, then you could save your home through New York bankruptcy. In particular, Chapter 13 bankruptcy, which is a restructuring of your debt, is a way to repay most or your entire mortgage.
#5: Your Reasons for Missed Payments are Long-Term
If you suffer a minor injury or illness, your missed credit card or loan payments could be a short-term symptom. However, a significant change in your income or financial resources is a different story. When your missed payments become continuous and ongoing, then you need a solution that breaks the cycle.
New York bankruptcy is a pause on the calls from debt collectors and halts the number and amount of missed payments. You are able to stall the increasing debt and reboot your financial situation. In fact, mounting debt from an ongoing source is likely the clearest sign that you should be considering a New York bankruptcy.
To learn more about New York bankruptcy and when it is an appropriate option, contact Simon Haysom, LLC. You can reach our Goshen, New York office by calling (845) 294-3596.
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