A good lawyer can explain if bankruptcy is a wise move.

If you can afford only the minimum payment on your credit card bills, then filing for bankruptcy protection may be a good move for you.

Likewise, if you’re stressed out by finances and thinking about tapping into a retirement account to make ends meet, then it’s time to talk to a lawyer about bankruptcy – now, before things get worse.

Even if you’re not broke, utilizing legal protections designed to help could be a smart option to brighten your financial future. In fact, rather than waiting until your situation worsens, it may be wise to consider filing for bankruptcy now so you can preserve more of your assets before creditors take them away.

“People usually file for bankruptcy when they come to a breaking point, where their wages are being garnished and the creditor is taking money out of their paycheck every month,” said Melvin J. Babi, an attorney with Babi Legal Group in Farmington Hills. “At that point, it’s forcing their hand.”

But you don’t have to wait until you’re desperate to inquire about filing for bankruptcy. A good bankruptcy attorney can determine if filing for bankruptcy is the right choice in your particular case.

For starters, here are five signs that you may benefit from bankruptcy protection:

  1. Your wages are being garnished to pay debt. Your income is your biggest wealth-building tool. Don’t let it get sapped away by debt collectors.
  2. You are behind on mortgage payments. Filing for bankruptcy doesn’t mean you’ll lose your house. In fact, it’s one way to keep it.
  3.  You are being sued for unpaid debt. Filing for bankruptcy puts an end to that legal action right away.
  4. You are looking at taking money from your 401(k) to pay off debts. Don’t do it. Bankruptcy protects your retirement funds from creditors.
  5. You are stressed out by your finances, hassled by bill collectors, and buying food and other daily necessities on credit. Filing bankruptcy can buy you peace of mind, relieving stress and giving you a clean slate on which to rebuild your financial future.

Filing for bankruptcy is neither uncommon nor shameful. There have been more than 25,000 bankruptcy filings in Michigan just this year.

About 78 percent of Michigan filings come under Chapter 7 of bankruptcy law, and about 22 percent come under Chapter 13. Again, a good lawyer can explain each kind of protection and which one is best for you.

Babi Legal Group has helped more than 2,500 satisfied clients get protection under bankruptcy laws. Unlike large law firms where clients can get shuffled between attorneys and meet with somebody different on every visit, at Babi Legal Group the same lawyer guides clients through the process with personal service from beginning to end.

For more information about Babi Legal Group and how to make the bankruptcy decision that’s in your best interest, call 248-434-4110 or click here to set up a free consultation.

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