3 Signs You Should Consider Filing For Bankruptcy

Are you struggling to pay your bills? Has your income taken a hit? Many people experience financial challenges at some point. If your challenges are serious, you may want to consider bankruptcy. While bankruptcy is never ideal, sometimes it's the best solution. Bankruptcy allows you to eliminate your debt and start fresh. Some forms of bankruptcy allow you to keep your major assets, like your home and car. Below are a few signs that bankruptcy could be right for you:

You're behind on your mortgage, rent, or car payments

Many people fall behind on things like utilities or credit card bills. However, you could face serious issues if you're behind on major bills like your mortgage, rent, or car payment. Your car could be repossessed, or you could be kicked out of your home. This is a sign that your debt threatens your way of life. Bankruptcy could be an effective solution. Depending on the type of bankruptcy you file, you may be able to keep your home or car while you catch up on your payments. At the very least, bankruptcy could slow the repossession or foreclosure process. 

You're using loans to pay loans

One of the surest signs that your debt is a serious problem is using loans or credit cards to pay other loans or credit cards. This creates a cycle of debt that is nearly impossible to escape without a major financial change. Some forms of bankruptcy can eliminate your debt completely. Others can restructure your payments to be more affordable. This can help you break the cycle and get a fresh start on your finances. Before you use debt to pay a debt, consider bankruptcy options.

Creditors are pursuing you

Is your phone ringing non-stop? Have creditors started legal processes to collect from you? This is a strong sign that you may need to consider filing for bankruptcy. Once you file, all collection efforts are paused. This gives your attorney time to contact creditors and work out payment plans. If that's not possible, your bankruptcy could eliminate the debt completely. Either way, those paths may be more feasible than fighting collection efforts in court. If creditors take you to court, they could put a lien on your home, and you could face judgments to pay the debt, legal fees, and late penalties. 

Ready to tackle your debt? Contact a bankruptcy attorney in your area today to learn more about your options.