Signs it's Time to Consider Filing for Bankruptcy

The decision to file for chapter 7 bankruptcy is one that should not be taken lightly. That doesn't mean debtors should consider this solution to be completely off the table, though. Those who are no longer able to pay off their debts often find that choosing to file for bankruptcy is the best way to get a fresh start.

The first step toward regaining financial independence is to find a bankruptcy attorney who can help. Read on to find out about a few signs that it might be time to start looking into options below.

Paying Living Expenses With Credit Cards

There's nothing wrong with using credit cards to pay bills. However, it's important that consumers be able to pay off the balance of these credit cards. Those who are finding that they have to use their cards to pay for their living expenses because all the money they are earning is being used to make minimum monthly payments may want to start looking into filing for bankruptcy.

Collection Calls and Letters

It's not uncommon for today's debtors to avoid picking up the phone completely because of the harassing phone calls they have been receiving from collections agencies. They are often similarly overwhelmed by demand letters in the mail. Readers who feel anxious just thinking about talking to collections agents may want to start looking into chapter 7 bankruptcy, as it offers the opportunity to put a stop to all those intrusive phone calls and demand letters.

Wage Garnishments


For those living from paycheck to paycheck, wage garnishments can have a devastating impact on personal finances. Creditors will continue to take home as much as 25% of debtors' weekly or monthly paychecks until they have recovered the money they are owed along with any interest that has accrued, but filing for bankruptcy will force them to put a stop to this practice. Similarly, those who have had their bank accounts frozen may find that filing for bankruptcy is the best option to stop this collection action.

Missing Payments

While the occasional late payment may not be completely catastrophic, repeatedly missing payments can lead to climbing interest rates and even more debt. Those who are in a position where they can no longer afford to pay even their monthly minimums on credit cards or outstanding debts may want to think about filing for bankruptcy.

How to Decide

The easiest way to determine whether or not it's appropriate to file for bankruptcy is to consult an attorney who can offer advice and explain legal options. Scheduling a consultation will give debtors the opportunity to ask any questions they may have, making the decision much easier.

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