One of the biggest issues that people run into when they debate whether or not they should look into bankruptcy is that they get self-conscious and wonder, “What will people think of me?” Bankruptcy isn’t anything to be ashamed of; in fact, it’s designed to help people who are so financially strapped, so they can finally come up for some air. But, not just anyone can file for bankruptcy and not everyone should.
Typically, bankruptcy is done when all other resources have been used up and it’s your only option left. To help you determine whether or not bankruptcy is something that’s worth looking a little bit more into, this article will list four signs that the time has come to consider it as an option.
1. You Use Credit Cards to Pay for Everything
Not having enough money to buy the latest clothes is one thing, but not having enough money to pay your bills is another. If you are constantly having to use credit cards to pay for bills and you never have enough money to catch up, then it’s a sign that you may need some financial relief.
2. You Can’t Keep Up With Credit Card Bills
The tricky thing about credit cards is that they tend to come with low introductory rates to get you locked into it. For instance, a lot of credit cards say that they offer six months of no interest if you pay the amount in full. Although that is a great solution for people who have a six-month pay-off plan, many people don’t, which is where they get into financial trouble.
Because credit card interest rates are typically in the 20% range, they can be almost impossible to pay off fully. And, if you’re only making the minimum payments, you may need years to pay it off. Plus, a lot of people have multiple credit cards which means several payments that you have to pay every month.
3. Collection Agencies Are Harassing You
When you have debt that you aren’t caught up on, credit card agencies and debt collectors will start calling you to collect it. If you are being constantly harassed by these agencies, try seeing if they will work out a payment plan with you. If they are unable to work with you, then you should look into another alternative such as bankruptcy.
4. You Have Lots of Medical Bills
Oftentimes people think that you only file for bankruptcy because of consumer debt, but a lot of Americans actually file for it because of medical bills. If you face tens of thousands of dollars of medical bills, you may not be able to keep up even if the hospital is willing to work with you.
First, make sure that you are upfront with the hospital so that they don’t send you to collections. Then schedule an appointment with a bankruptcy attorney.
Schedule a Consultation
Debt is one of those thing that consumes most Americans. If you feel like your debt is too much to handle, the you may want to consider filing for bankruptcy. Before you do, contact our law office and schedule a consultation. During your consultation, we will discuss all of your options and look over all of your documents to make sure you’re a good candidate for it.
What to Bring to Your Consultation
- 4 years of tax returns
- Driver’s License
- Social security card
- 7 months of pay stubs
- 12 months of bank statements
- Copy of a recent credit report
If you are in financial trouble and need to file bankruptcy, don’t do it alone. Let us at The Madden Law Firm Attorneys At Law help you.
