Dealing with debt can be extremely stressful and emotionally draining. However, it is something that thousands of Americans face on a daily basis. In some cases, the debt becomes so difficult that people have to start considering the option of bankruptcy. However, this is a drastic step. How do you know when it is time to take it and when you shouldn’t? It’s a difficult decision, but to help you make that choice, let’s look at some signs that it may be time to look into bankruptcy.
You Have Been Out of Work
If, for some reason, you have been out of work for a very long period of time and you have not been receiving unemployment income, then it may be time to file for bankruptcy. That’s because you will not have the financial recourse needed to pay debts that are building up over that time.
You Owe a Lot of Back Taxes
If your taxes have been building up to the point that you are delinquent, then it may also be time to file for bankruptcy. Remember that the IRS has the right to garnish your wages and this can put a financial burden on you when you don’t have the ability to pay your other bills.
Your Home Is Close to Foreclosure
This is an obvious sign that you are in severe financial trouble. When you cannot make your home payments, you have to start thinking about bankruptcy as a way to get relief from your numerous expenses.
Your Bills Are Delinquent
When you have numerous different bills that have continued to build up and you are not able to pay them, then this could be a sign of impending bankruptcy. You may have collectors and creditors calling you regularly trying to get money from you, but you may have no money whatsoever to give them. If this is the case, then bankruptcy may be the only way to get relief in the first place.
Your Wages Are Being Garnished
As mentioned, this could happen if you owe back taxes to the IRS, but that isn’t the only reason for wage garnishment. No matter why someone is taking money from your paycheck, it can put a serious financial burden on you. You may not have the money needed in order to cover your own bills simply because so much money is being taken out of your paycheck in the first place.
If you are seeing any of these signs or a combination of them in your own finances, then it may be time to start considering bankruptcy. While that isn’t something anyone wants to face, it could be the best reality for you. Should you feel that you may need to file bankruptcy, it is very important that you get an attorney who has experience with bankruptcies in particular. This type of law can be difficult to navigate and you will want to make sure everything is handled properly. That way, you will get the best possible outcome.
