How do you know it’s time to file bankruptcy?

It is not uncommon for individuals to struggle for far too long against mounting debt. In many situations, by the time they begin considering bankruptcy as a debt relief option, these people should have already filed months ago. Unfortunately, many people hold on to the hope of correcting financial peril on their own without fully considering their options.

The urge to fight through any sort of financial trouble is deeply ingrained. Unfortunately, when finances begin spiraling out of control, it can be challenging to course-correct. There are several clear signs that bankruptcy should be considered as a strong option to strengthen your finances, including:

  • Sacrificing one bill for another: When it becomes necessary to make an on-purpose late or missed payment to have enough money to pay a different bill, you have reached a dangerous crossroads.
  • Paying one credit card with another credit card: While some people move money from one account to another for reasons such as better APR or customer rewards programs, when paying one credit card with another credit card becomes the only option for an on-time payment, you might be in financial trouble.
  • Facing foreclosure or repossession: From home foreclosure and vehicle repossession to agencies collecting collateral for secured debts, losing tangible assets is a clear sign that you are facing financial peril.
  • Aggressive collections efforts: While there are certain rules and restrictions that a collection agency must follow, debt collectors can become aggressive in their efforts. From phone calls to letters and email, they will attempt to coerce payment whenever possible.

While every situation is unique, these are common signs that you are facing financial peril. If you are facing any of these scenarios or you see them approaching on the horizon, it is time to discuss bankruptcy with a trusted legal professional.

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