Should I Declare Bankruptcy? 5 Signs the Answer is Yes

In 2018 there were more than three-quarters of a million personal bankruptcy filings in the US.

When debts spiral out of control, bankruptcy can sometimes be the best way to get free from debt and turn things around.

Obviously, there are downsides to filing for bankruptcy, but for many people, the benefits outweigh the costs.

Should I declare bankruptcy? Read on as we look at five signs it might be worth considering.

1. Your Bills Are Out of Control

If every month is a constant battle to pay your bills, then this is a sign that you may need to consider bankruptcy.

If you’re regularly missing payments or having to borrow money every month just to pay off all of your bills, then this isn’t a sustainable position. If you can’t find a way to reduce your debts or make more money, then you’re never going to be able to escape the cycle without options such as bankruptcy.

2. You’re Relying on Credit Cards

If you’re accessing more debt to pay off the debts you already have, then you know things are getting out of hand.

If you’re using your credit card to cover payments that you couldn’t afford otherwise, then you’re just replacing one debt with another. This might work in the short term, but you’ll just be racking up even more interest that you can’t afford to pay off.

When you’re maxing out all your cards, it’s time to think about bankruptcy as an option.

 

3. You’re Behind on Major Payments

If you’re behind on small payments, then it’s so much of an issue. If you fall behind on major payments, this can have serious consequences.

For example, if you’re falling behind on mortgage payments then there is a serious risk that you could lose your house. If you’re struggling to meet payments for your business, then you could lose everything you’ve invested in it.

In this case, you need to speak to business bankruptcy law firms who can advise you on the best way forward.

4. Debts Are Causing You Stress

Your health is more important than money.

If your debts are causing you severe stress, then it can have a negative impact on your health. Filing for bankruptcy can help to free you from your debts and remove the stress that they have caused.

If money issues are affecting your health, there are always steps you can take.

5. You’ve Run out of Savings

It’s important to have savings in case of an emergency. If you’re burned through all of your savings paying off your bills, then that’s a worrying sign.

It means that if you continue to struggle to pay bills and other debts, you’re going to start getting further and further into debt. If your savings have been used up, it could be time to consider taking action.

Should I Declare Bankruptcy?

It’s a question many people ask: should I declare bankruptcy? If any of the signs listed above are things that you’re experiencing, then the likelihood is that bankruptcy is something you should at least consider. Speak to a professional who can give you advice on whether bankruptcy is the right option and what the next steps should be.

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