Are creditors calling so often that you know their number? Is your car at risk for being repossessed? These are just some of the signs it might be time to consider bankruptcy.
When credit card bills start to soar and bill collectors are calling,
one option that you have is to file bankruptcy. Yet, this is not always the right option for debtors. Before you decide to file, you need to determine if this is the right action for your financial situation. Here are some signs it might be time to file.
You Know Your Creditors By Phone Number
If your creditors are calling so much that you can recognize their phone numbers on your caller ID or cell phone, it is probably time to start thinking about a solution to your debt. Creditors only call that often when things get really bad. When you get to this point, contact an attorney to learn a little more about bankruptcy.
You Cannot Repay Your Debts and Feed Your Family
Most people do not intend to get into serious debt trouble. Sometimes it comes a little bit at a time until suddenly, all the money is gone. Other times an unexpected situation, like medical bills or unemployment, makes going into debt a necessity. Yet, when you realize that you have reached the point that paying your debts off in the next 12 months would require you to stop buying food, then it may be time to consider bankruptcy. The program exists for people, like you, who find themselves between a rock and a hard place, with no other option.
No One Will Lend You Money
When money starts getting tight, many people find that their friends or family members are willing to lend to them for a temporary situation. However, when the money problems drag on and on, and eventually you cannot repay your friends or relatives, you will soon find that the number of people willing to lend to you has dropped significantly. When this happens, it is a sure sign that it may be time to file. After all, if even Mom and Dad will not lend you money, where are you going to turn?
You Are Losing Assets
Is your home in foreclosure? Has your car been repossessed? Are your wages being garnished? These are very serious situations, and they can possibly be helped through bankruptcy. While only an attorney can say exactly how much help filing can be once these actions have started, declaring yourself bankrupt may be the best option in this situation.
Remember, bankruptcy gives you a chance to start fresh with your finances, but it is only beneficial if you are in a situation where it will bring the most help. Some people rush into this process before they understand it or before they really need it, and that can spell financial disaster. Instead, look at your life and see if these warning signs are present. If they are, then you should consider filing. If they are not, it may be time to look at a different solution to your financial difficulties.
