Bankruptcy is the last thing on most people’s minds, even when they’re struggling with debt. The reality is that bankruptcy is seen as a kind of last-ditch effort to get out of financial trouble, even though the truth is that it can be an excellent way to stop collections and to get back on track financially even before it’s the only option left.
Bankruptcy may be seen as a way to dodge paying back what you owe or to give up responsibility, but in truth, it’s a program that is designed to help people in your situation. Anyone who is in difficult financial circumstances may want to consider bankruptcy, especially if they cannot make their payments on time. Bankruptcy can help prevent foreclosure, stop harassing collection phone calls and more.
At what point should you consider bankruptcy?
It’s different for everyone, but you may want to consider bankruptcy if:
- Your credit score has already fallen significantly because of an inability to make payments on time
- You have maxed out your credit cards
- You lost your job and have no way to repay what you owe
- You’re having to choose between necessities and paying back debts
- You tried other options, like debt consolidation, with no success
It’s important for you to realize that bankruptcy is here to help. It’s not something you should feel bad about filing for. Bankruptcy comes in different forms, all of which you can explore when you speak with your attorney. Our website has more on bankruptcy and why it could be helpful if you’re struggling with debt.