Filing for bankruptcy can be a challenging decision to make, but some situations may call for it. Avoiding or delaying getting more information on bankruptcy and declaring may lead to more problems.
Thus, it’s vital to know which bankruptcy option works for you and make the decision. But when should you do this? This guide discusses when it’s time to file for bankruptcy.
You have high debts
If you have high debts you can’t repay, you should consider filing for bankruptcy. Essentially, when your combined unsecured debts or the monthly payments on all your bills exceed your income, you probably need to start considering all your options.
You depend on credit cards for daily necessities
Your income should pay for your basic needs, including food, shelter and clothing. However, if you can’t pay debts and cover your basic needs that you are depending on credit cards for everyday necessities, it may be time to file for bankruptcy. Besides, credit cards accrue high interest on every balance. Thus, while this may seem like a solution, it will get you into more debt.
You get endless calls from debt collectors
Debt collectors can call frequently and send letters, which can be overwhelming with time. You may get anxiety from your phone ringing or when opening mail. If this is your case, filing for bankruptcy to stop these contacts, protecting your mental health.
You don’t know how much you owe
If your debts get out of hand that you don’t how much you owe or have even forgotten the creditors who may have forwarded you to debt collectors, it may be time to consider other options.
Filing for bankruptcy can clear some of your debts, stop calls from debt collectors and prevent creditors from repossessing some of your assets. You should learn more about bankruptcy to make informed decisions.