Debts have a way of lingering over us, and for some, it may actually affect their daily life and mental health. Filing for bankruptcy is a resource for those who feel that their debts vastly outweigh their earnings, and don’t see themselves getting out of this tricky financial situation anytime soon. When the reality of the situation sinks in, a rush of panic may flood in, and you may be left feeling hopeless about what to do next.
Filing for bankruptcy can be a good option for those who want to reduce their debts and lay a foundation for a stronger financial future. Here are signs that is may be time to seriously consider filing for bankruptcy:
You are Struggling with Minimal Payments
If you are finding yourself having to choose between paying one bill over others, this means you are not earning enough to meet basic needs. For example, if you are having to choose to either pay your electricity bill or your monthly credit card payments, then this is a sign that something may have to eventually change.
Collection Agencies Won’t Stop Calling
Being bombarded by collection agency phone calls can be enough to send someone into a fit of anxiety. Rarely do people completely forget about their looming debts, so the incessant phone calls aren’t making anything better. Upon filing for bankruptcy, an automatic stay is enforced, which means your creditors have to halt contacting you in any way so that you have the space you need to rearrange your finances.
Credit Cards are Paying for Necessities
Some people use credit cards as a way to afford necessities and get awards for what they spend. This may work if the balance can be paid from month to month. But, if someone is using credit cards solely because they don’t have enough to pay for basics of living, then it may be time to get help.