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1.  You are more than 1 month behind on your rent

To take full advantage of bankruptcy laws and the automatic stay, you need to file for bankruptcy (either Chapter 7 or Chapter 13) before the landlord files an eviction suit.  If a lawsuit is filed, the landlord may be allowed to maintain his suit even in the face of a bankruptcy filing.

2.  You have received a foreclosure notice with a sale date

Eviction can be a fairly protracted process, but foreclosure can take even longer.  And even if you file bankruptcy shortly before the sale, the automatic stay still applies in full.  The operative phrase is “don’t fire until you see the whites of their eyes”.    If all other efforts to save your home have been unsuccessful, that is the time to file bankruptcy.

3.  Your unsecured debt exceeds $10,000.00

A rule of thumb is that if you owe less than $10,000.00 in unsecured debt (credit cards, medical bills, etc.), you should probably try to work out payment and/or settlement arrangements with the moneylenders.  If your unsecured debt exceeds $10,000.00 you should probably think about filing bankruptcy.  $10,000.00 is more money than most people can realistically pay off in a realistic amount of time, especially if interest is compounding.

The professionals at Henley and Henley, P.C., are here to help in all of these situations.  If you need to file bankruptcy, if you need pre-bankruptcy debt solutions, or if you just want to take to a professional about your financial situation, call for your free consultation.