Bankruptcy is a big decision and, despite, filing bankruptcy being more commonplace in a post-2008 world, people do almost anything to avoid it. Many people experiencing debt issues are curious about when filing bankruptcy is the answer. The answer is different in every situation. However, debt problems are like medical issues, where symptoms will lead a professional to a diagnosis. Here are some financial distress “symptoms” that may mean it is time to visit an experienced bankruptcy attorney to discuss debt relief options, including whether filing bankruptcy is the answer:
- Inability to make more than the minimum payment on credit cards
- Bouncing checks and routinely overdrawing bank accounts
- The collection calls never stop
- Payday loans
- Regularly borrowing money from family members or using credit cards to pay for regular necessities
- Fall behind and catch up on car or mortgage payments regularly
- A creditor has filed a lawsuit or received a judgment
- Bank accounts or paychecks are being garnished
- Lost track of the total amount of debt owed
- Mail and bills statements go unopened
- Thoughts about liquidating retirement to pay
debt - Prolonged unemployment
- A dramatic decrease in household income that will continue indefinitely
If 2 or more of these symptoms are present, then it is time to talk to a debt relief specialist who can provide education about debt relief options, including filing bankruptcy. Most bankruptcy attorneys offer free consultations and preparation for the meeting will assist in collecting the information needed to evaluate and diagnose whether bankruptcy is the answer.
