Many people see the act of seeking help with filing bankruptcy as a last resort — and it is, in most cases. But that doesn’t mean you should completely rule out the idea of filing for bankruptcy, as a bankruptcy helps you get a fresh start on your life if your finances are in a dire enough situation.
That may just be why about 1 million people filed for bankruptcy in 2013. But how do you tell if or when you should file for bankruptcy?
Here are the three most common indications that you could benefit by hiring a Chapter 13 bankruptcy attorney or Chapter 7 bankruptcy attorney and filing for bankruptcy:
You are taking out loans to pay for your existing loans
If you’re doing this, then you absolutely need to look into filing a bankruptcy. If you are using credit cards to pay for your loan repayment bills each month, you’re doing nothing but digging yourself deeper into the debt hole. The only true way to get yourself out of it again is to cast off all your debt with the help of a bankruptcy.
Your savings are depleted and you aren’t saving any of your income
These days, it is a necessity for an individual to save money. Whether it’s for their retirement or just to have some extra money in case of an emergency, having money saved up is essential — so if your savings account is empty, and you can’t put any of your income into savings, you have a problem. A Chapter 13 or Chapter 7 bankruptcy can help you manage your debt so you can start putting more of your money into savings again.
You receive frequent calls from creditors and debt collectors
Is your phone always ringing off the hook with calls from your creditors and harassing debt collectors? If so, it can be a cause of great anxiety and stress in your life — and the only way to make the calls stop is to pay off your debt or get rid of it with a bankruptcy filing.
Has filing for a Chapter 13 or Chapter 7 bankruptcy helped you? Share your experiences and thoughts with us in the comments below. For more about this, go here.