It isn't uncommon to come to a point in your life when you are consumed with debt. This may be a mortgage, car payment, and other living expenses that you simply can't afford, or it may be medical bills, student loans, and credit card bills that just continue to pile up. Whatever the case may be, if you have found yourself in some sort of financial trouble, it is important that you realize it is possible to put your money woes behind you and move forward with a debt-free future. What you need to determine is whether or not your current situation warrants filing for bankruptcy. Here are a few situations when you should consider filing:
1. You Are Using Your Credit Cards to Survive.
If your debt has gotten to the point that it is so bad that you are using your credit cards to survive, then you are in deep. This means that you are paying your living expenses and putting food on the table with your credit cards, not to mention that you are also paying your credit card payments with your credit cards. This is a toxic cycle to be in and incredibly difficult, if not impossible, to get out of. In most cases, you will find yourself getting deeper and deeper into debt as each month passes.
2. You Are Unable to Make Your Minimum Payments.
If you notice that you are unable to meet your monthly minimum payments on any or all of your lines of credit, then you are going to realize that your debt is going to increase every month and you won't be able to use it. Your payments will begin to go toward interest instead of the principal and the interest will continue to pile up. In other words, your financial situation won't be getting any better; in fact, it will be getting worse. Unless you see a change in your finances in the near future, things are simply going to continue to go downhill.
3. You Have Been Unemployed for a While.
If you have lost your job and do not have a way to make the payments on your home, car, credit cards, utilities, etc., you will quickly realize that you are in over your head in the financial department. If you are unable to find new employment and do not have any way of getting your bills paid, bankruptcy can be considered as a last resort. However, it is important to keep in mind that bankruptcy does show up on credit screenings, so it could keep you from getting a job.
If you are unsure whether or not you meet the requirements to file for bankruptcy or would like to learn more about the options at your disposal, click here for more information and reach out to an experienced bankruptcy attorney in your area.