Nobody sets out on a life path expecting that they will one day need to declare bankruptcy. However, the reality is that filing for bankruptcy can—and does—help hundreds of thousands of people each year get out from under the crippling debt that all too often controls their lives.
But how can you tell when a good time to declare bankruptcy is? How long do you wait?
Below are seven indicators that may be signs that it is time to think about looking into bankruptcy as an option for a fresh start:
- Missing Payments: If you are missing payments on your household or credit card bills, it is a good indication that you may be over your head in debt. Pay especially close attention to major bills, such as the mortgage payment, rent, or a car payment. Skipping these as a result of lack of funds is an indicator that it may be time to look into filing bankruptcy to help relieve your financial burdens.
- Debt-Management Companies Refuse to Help: If you have tried to qualify for debt relief, but have been told that you cannot qualify, it may be because you don’t have a sufficient debt-to-asset ratio.
- You Have Already Used the Home-Equity Option: A home equity loan allows homeowners to borrow against the equity in their home at a relatively low rate in order to pay off higher interest rate bills. If you have already done this, and find yourself still in financial trouble, it may be wise to look into bankruptcy as a next-step option.
- Consistent Calls From Debt Collectors: If you are receiving constant calls from people to whom you owe money, it makes sense to find a skilled Kentucky-based attorney who is experienced in the nuances of bankruptcy filing who can advise you of your options.
- Your Credit Cards Are Maxed Out: If you have several credit cards and they are all at their limit, you likely have nowhere left to borrow from and may want to speak to a Kentucky bankruptcy law attorney about the prospect of filing for a fresh start.
- You Are Considering High-Cost Loans: If you are looking at car title loans or other high-cost loans as solutions to your short-term cash needs, you are paying exorbitant amounts of interest and consequently raising your principal balance substantially in the process. Doing this is not a sustainable solution, whereas filing for bankruptcy may be a more realistic way to get you back on your feet financially.
- You Are One Major Setback Away From the Brink: If you have evaluated your current financial situation and you don’t think it would be feasible to pull together enough money in a pinch to cover a large, unexpected financial setback, such as a medical bill or car repair, then it is probably time to start looking into your bankruptcy options.
Do You Think You may Benefit From Filing for Bankruptcy?
Do you meet one or more of the criteria set out above? If so, filing for bankruptcy may be an appropriate path for you to consider. Bankruptcy doesn’t need to come with a social stigma; rather, it exists as a means to obtain a fresh start and relief from unmanageable debt. In fact, most people who end up filing—and benefiting from—bankruptcy are good, hard-working people who just happened to encounter a difficult financial time in their lives. To learn more about filing for bankruptcy, and to speak to a dedicated Kentucky bankruptcy law attorney, contact Schwartz Bankruptcy Law Center by clicking here, or call 866-366-3328 to schedule an initial consultation.
More Blog Posts:
Bouncing Back After Bankruptcy in Kentucky, Kentucky Bankruptcy Lawyers Blog, published July 16, 2014.
Pizza Chain, Sbarro, Has Its Bankruptcy Plan Approved By Federal Court, Kentucky Bankruptcy Lawyers Blog, published May 28, 2014.