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3 signs it is time to consider filing for bankruptcy

On Behalf of | Aug 15, 2022 | Personal Bankruptcy

If you are struggling to pay your bills, have had an unexpected life event or are overwhelmed by debt, then you need to consider seeking a fresh financial start. One debt relief option you can consider is declaring bankruptcy.

People declare bankruptcy for a variety of reasons. No matter the reason, here are three questions that can help you determine if it is time to declare bankruptcy.

Do you depend on credit cards to take care of recurrent bills?

Credit cards can be helpful. However, thanks to their high-interest rates, over-dependence on a credit card is never a good idea. If you are depending on your credit card to pay for recurrent bills or get until the next payday, this could be indicative that it is time to review your finances and spending habits. If this does not bring any relief, you need to explore the possibility of declaring bankruptcy so you can have a fresh start.

Are you putting off essential payments because you cannot afford them?

Are you struggling to pay essential expenditures like your mortgage, prescription refills or car maintenance? Not having funds on hand to make such payments could be a sign that your finances are strained. In this case, you may consider revising your expenditures. However, if you are still struggling even after revising your budget, then you may consider declaring bankruptcy.

Are creditors coming after you?

If you are choking in debt and your creditors are threatening to seize your assets, then you may want to negotiate a payment plan. However, if this is not possible, then bankruptcy may be your best option, provided that the debts in question are dischargeable through bankruptcy.

Are your finances in distress? Knowing your bankruptcy eligibility can help you discharge your debts and have a fresh start.


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