You know that you are having serious trouble with debt, but is it time to file for personal bankruptcy? It’s a big decision, and you don’t want to go through bankruptcy unless it is the best choice for getting yourself and your family out of debt.
If you are looking for signs that it is time to consider Chapter 7 or Chapter 13 bankruptcy, here are six examples. How many of them are you experiencing?
- Thoughts of your financial troubles are keeping you up at night
- You are getting so many phone calls and letters from debt collectors that you are afraid to answer the phone or check your mail
- You are having problems concentrating at work, or finding a new job if you are unemployed
- You are thinking about cashing in all or part of your 401(k) to pay off your credit cards or other debts
- You are borrowing more money just to keep up on the interest payments from an existing debt, i.e., robbing Peter to pay Paul
- Tensions about money are affecting your relationships with your family and friends
Someone who is going through all six of these is almost certainly a good candidate for bankruptcy relief. But even if you only recognize one or two of these issues in your own life, it is time to give bankruptcy some serious thought. For one thing, filing for bankruptcy will put a halt to harassing phone calls and letters from debt collectors. That should help alleviate your stress and give you the time and energy to use bankruptcy to its full advantage.