Here at Sherman Law Firm, P.C., we are often asked about the right time to declare bankruptcy. As we tell our clients, you should first make sure that you have fully understood the effects of making this decision. Also, it is important that you have considered and even tried other options such as negotiating with creditors; credit counseling, and modifying your loans.

Once you have decided to file for bankruptcy, your creditors will be instructed to stop collecting money from you, filing lawsuits, or attempting to seize assets. However, you will still face responsibilities in the court, possibly a drop in your credit score, and other possible setbacks in your record. We advise our clients to consider their options carefully before declaring bankruptcy.

Here are some signs that you are in need of help:

• Debt is piling up — Are your debts decreasing and they’re respective interest rates going up? It is time to take a good look at your balances. Are you meeting each payment monthly or are you constantly in need of renegotiating your payment terms? Are you applying for a new loan to cover up for another? If you think that your current debts won’t be settled within 36 months or less, then it might be time to think about bankruptcy.
• You no longer have an income — If you are unable to keep the house financially afloat because of no source of income or you have delinquent taxes, then you need to consult with legal and financial experts to help you make your next move.
• Your retirement could be in danger — You can be tempted to trim a bit off of your retirement fund just to settle your debts. In fact, many senior citizens would rather use their retirement money to pay loans than to declare bankruptcy. However, this is never the wisest decision.

The right time to declare bankruptcy is still best determined by a lawyer who specializes in bankruptcy. No one likes to owe a debt, but sometimes we are faced with problems that will hinder us from paying it back. We can end up overwhelmed with financial difficulties. For more information on how you can manage your current financial situation and whether bankruptcy is an option for you here in the Dallas Ft Worth Texas area, schedule a Free Consultation with us here at Sherman Law Firm, P.C.