To put it mildly, struggling with crushing debt can be stressful. If you’re in that situation now, then you’re probably riddled with anxiety, and you might experience bouts of depression as you try to get a handle on the uncertainty of your future.
Even when you’re feeling hopeless, you might feel like putting in extra work, taking a second or third job, or finding ways to cut your expenses will be enough to climb out of the hole in which you’ve found yourself.
The sad reality is that many people who try to fend off overwhelming debt only find themselves falling further behind. If that’s happening to you, then you should think about whether personal bankruptcy is a viable option. If you successfully pursue a bankruptcy petition, then you could shed most, if not all, of your debt, giving yourself the new lease on life that you want and deserve.
How do you know if it’s time to file for bankruptcy?
There are several signs that it might be time to consider pursuing personal bankruptcy. Here are some that you should consider:
- You can’t make your minimum payments: If you can’t stay current on minimum payments for credit cards, your mortgage, or medical debt, then you’re bound to be hit with a revolving door of late fees and collection fees. This will just dig you deeper into the hole, making it even harder to get out of it.
- You’re picking which bills to pay: To be financially secure, you have to pay all of your bills each month and on time. If you’re funds are regularly depleted to the point that you have to pick and choose which bills you’re going to pay each month, then you’re going to quickly fall so far behind that you can’t catch up.
- You’re being harassed by creditors: When you get behind on your bills, creditors are going to start calling you, perhaps even to the point of harassing you. You can bring all of that to a stop by filing for bankruptcy. So, if you’re tired of dealing with collectors, then it might be time for you to consider filing a bankruptcy petition.
- You’re pulling retirement funds to pay your bills: When you file for bankruptcy, you get to exempt certain property, including your retirement savings. If you pull from your retirement funds to try to pay off bills that are consuming your finances, then you’re throwing that money away. You might be better off filing for bankruptcy and protecting your assets through the bankruptcy process.
- You’re selling your assets to try to cover your debt: Again, some of your personal property is exempt through the bankruptcy process. If you’re selling those assets to try to cover your debt, then you’re unnecessarily cutting yourself short.
- You’re subjected to high interest rates: The longer you struggle to pay off high interest debt, the more you’re likely to fall behind and waste your hard-earned assets on paying off insurmountable debt. It’s okay to admit that you can’t get ahead and save as much of your money as possible.
Do you want to learn more about what bankruptcy can do for you?
If after reading this post you think it’s time to think about bankruptcy, then now is the time to start educating yourself about the process further. By doing so, you’ll take the mystery out of it, which can provide comfort and peace of mind. It can also dispel some of the common misconceptions about bankruptcy.