9 Signs Why You Should Consider to File For Bankruptcy

For a great number of people, deciding whether or not to file for bankruptcy is one of the most difficult decisions to make. However, it might be the most practical option and the last resort for debtors to remedy the current financial situation and start again on a clean slate. 

Filing for bankruptcy may be the best way to deal with your financial problems if :

#1 You feel like you are sinking financially.

 If you feel like you have dug yourself a bottomless pit of the financial crisis, then you may need to file for bankruptcy.  

#2 You have difficulty with meeting payroll.

 Your business is dead if you experience difficulties meeting payroll, so it may be best to declare bankruptcy.

#3 You incurred large medical bills following an illness. 

If you feel like you have been financially ruined due to ongoing medical bills related to an illness, it may be time to consider declaring bankruptcy.

#4You are being harassed by creditors and don’t have the income to pay your creditors.

 You keep getting threatening phone calls from creditors and threats of wage garnishment, it may be time to consider declaring bankruptcy.

#5 You need a mortgage loan modification

 It is possible to apply for a mortgage loan modification in chapter 13 bankruptcy with approval from a bankruptcy judge.

#6 You have maxed out on your credit cards

 Upon filing for bankruptcy, your credit card debts automatically get wiped and will no longer be a pain point.

#7 You don’t qualify for debt relief plans.

 Not meeting the specific requirements of the program by having a steady income or a good credit score should make declaring bankruptcy the right solution.

#8 Your minimum debt payments exceed your monthly income.

If you have to struggle with meeting debt obligations on your current income then it is time to file bankruptcy 

#9 You are getting/got a divorce.

This can cause a huge financial strain as marital dissolution can be expensive hence why filing for bankruptcy might be necessary. 

It is not an easy decision to file for bankruptcy, but then it is the light at the end of the tunnel for a lot of people. And despite the stigma, bankruptcy may help your credit scores.