Signs You Need to File for Bankruptcy

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Are you struggling to make ends meet, with bills piling up and credit card debt and medical bills rising? You need help, and filing for bankruptcy might be the solution. 


There are key signs that can indicate it’s time to stop struggling with your debt and instead file for bankruptcy. Check out some symptoms you shouldn’t ignore.

1. You Can’t Afford the Minimum Payments

One of the first signs that you need to file for bankruptcy is if you cannot afford the minimum payments on your loans or credit cards. If you owe hundreds of dollars a month just to make the minimum payment on your credit card bill, it can be time to seek help. Paying this bill can prevent you from paying other bills or buying necessities for your family. It can lead to major stress and put you in deep financial trouble. 


2. You Charge Necessities

Another reason to file for bankruptcy is if you use your credit cards for everyday necessities, like gas or groceries, and are not paying off the balance each month. This can put you deeper into debt. 


3. You Overspend

If you are spending more than you are bringing in each month, it can indicate you are falling into debt and you need help. While setting up a budget can help you overcome this and keep your spending habits in check, it can also lead to bankruptcy. 


This can be due to not making enough money. While we all wish we could name our salaries and have an endless amount of money each month to spend and pay bills, that’s not how it works. Your current salary might not be enough to support you. While looking for a different job, you could also consider filing for bankruptcy.


4. You Don’t Pay All of Your Bills Every Month

If you’re falling into debt, paying your bills every month can be a struggle. You might fall short of paying for your rent or mortgage, car payments, credit card bills, etc. Skipping bills for months can put you deeper into debt and put you at risk with your lenders. Filing for bankruptcy can help you get a handle on your bills. However, skipping bills is not the answer and can be extremely risky. 


5. You Get Harassed By Creditors

It can be embarrassing and annoying if you constantly get calls from creditors or lenders asking for payments. Bankruptcy can end these calls. When you file for bankruptcy, an automatic stay goes into effect, preventing creditors from harassing you for repayment.


6. You Use Your Savings to Pay Bills

Another sign indicating you need to file for bankruptcy is if you are constantly dipping into your savings account to make ends meet each month and pay your bills. Your savings are meant to be an emergency fund – not to help support you. 

Suppose you’re using your retirement funds to pay off loans or debts. This can also indicate that you need to talk to a bankruptcy attorney about filing for bankruptcy. 


7. You Are Selling Your Items

If you’re trying to make extra money to pay your bills by selling off your belongings, it can be a big flag that you need to file for bankruptcy to get out of debt. In some cases, it can make sense to sell a valuable item to pay off a bill, but if you do it often or if you rely on this money, then it can indicate you need a debt resolution plan.


Let Us Help You Navigate Debt and Bankruptcy

If you are deep in debt and are struggling to pay your monthly bills, bankruptcy might be the right solution. Let our lawyers at the Law Offices of Alexzander C.J. Adams, P.C. help. We will help you determine if bankruptcy is the best option for you. We work for you, the people, and not institutions. Contact us for a free case evaluation or no-obligation consultation. We are dedicated to helping you overcome this minor bump in the road and assisting you in getting on with your life.


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