The truth about bankruptcy is that it can happen to anyone. There is always a reason for a bankruptcy filing, such as medical expenses, unexpected job loss, or a death in the family. And while it’s always a last
resort in managing your finances, there are plenty of ways that bankruptcy can provide you with much-needed financial relief.
If you are struggling under the extreme burden of unmanageable debt, here are some of the signs it might be time to consider filing for bankruptcy.
Is a bankruptcy filing right for you?
Read through the following scenarios. Do any of them apply to your current situation? A trusted bankruptcy lawyer can help you navigate your way through the decisions ahead.
- You’ve spent through your savings. This is a small warning sign and less of a red flag, but if you’ve spent through your savings, it might be time to consider your future financial position. Emergency savings are just that – for emergencies – so it makes sense that you might spend through them in the wake of a major life upheaval. But if you’ve spent all you’ve saved and the bills keep coming, you might be at risk for falling behind.
- You’re living off your credit cards. Credit cards are a useful tool – not only can they help you earn airline miles and points for purchases, you can use them to build credit and bail yourself out of an emergency, like a car repair or vet visit. However, if you’re leaning exclusively on your credit cards to finance even the most basic of purchases, it could be a sign that you’re in over your head financially.
- You can’t pay your mortgage or your rent. If you’re struggling to make payments on your home, you’re not alone. It’s not easy to decide between buying groceries or paying the mortgage, or filling the gas tank or filling your monthly prescription. Hard choices like this likely mean that your financial situation is tenuous and that your debt may be too burdensome.
- Creditors won’t stop contacting you. A for-sure sign that your debt has become unmanageable is the constant pressure of the creditors who have been contracted to collect from you. Whether it’s notice after notice in the mail or phone calls from unidentified numbers multiple times a day, it’s stressful to feel harassed by creditors who are contacting you endlessly about unpaid debts you can’t afford right now.
- You’re considering debt consolidation or loan restructuring. You might feel like you’ve run out of options when it comes to getting your debts in order. In many cases, debt consolidation programs and loan restructuring are good options for people with extreme debt who’ve suffered financial hardship, but they often mean you’ll be repaying your debt for years. Many people may not even qualify for the programs in the first place.
A qualified bankruptcy lawyer can provide solutions
If the burden of debt is affecting the quality of your life – in the form of lost sleep, family fights, and unending stress and anxiety – a law firm specializing in bankruptcy can help you find the best options for your situation.
Here at the Law Offices of Ryan E. Simpson, we know that financial hardship is rarely just a side effect of extreme irresponsibility – it’s not a simple matter of getting a latte habit under control. We know that unforeseen financial distress happens to the best of people and we work hard at helping you get your life back on track, the same way you work hard to earn your money.
Our team is here to help, not to force you into making hasty decisions. We understand the pressure and fear involved with filing for bankruptcy, but we’ve also seen the freedom and peace of mind that people have experienced when they’re debt-free and out of financial danger. You don’t have to go through finding freedom from debt alone – we can make the process easier and provide you with answers to your questions along the way.
