How Do You Know When to File for Bankruptcy? Here are 8 Surprising Signs

how do you know when to file for bankruptcy?Everyone’s financial situation is different. So how do you know when to file for bankruptcy?

The best thing you can do is speak to a bankruptcy attorney. Only a bankruptcy attorney can evaluate the big picture and help you determine whether you should file for Chapter 7 or Chapter 13 bankruptcy.

That said, some common signs indicate bankruptcy could be your best option.

Here are eight important signs you should file for bankruptcy:

1. Your Budget Isn’t Working

If you’re constantly borrowing money or using credit cards to meet payment obligations, then your budget is too tight.

You can create a spending plan that helps you understand how much money you have available each month. And this helps you prioritize your debts and know what you have to put toward fixed costs and discretionary expenses.

But in the end, if you aren’t meeting payment deadlines, it’s likely time to consider bankruptcy.

2. You Can’t Afford Health Care Costs

Are healthcare costs dragging you down?

Do you have medical bills you can’t afford?

Are your deductibles and co-payments too high?

Bankruptcy can help you get the cost of healthcare under control. Medical bills are usually dischargeable, which means you’ll be better able to afford the cost of your medical care moving forward.

3. Your Interest Rates are Obscenely High

Getting a loan is a challenge when you have a lot of debt.

Even if you’re lucky enough to get your loan application approved, you’re looking at a high-interest rate. This means you’re paying more for the money you borrow than you would if you had good credit.

If borrowing money is impossible, either because you’re turned down or because it’s too expensive, bankruptcy can give you a fresh start.

4. You’ve Fallen for Scams

Having a lot of debt makes you vulnerable. In some cases, it makes you downright desperate.

This desperation can cause you to fall pretty to scammers.

Scammers know how to find out information about consumers and they use that information to take advantage of those who are overextended.

If you’ve gotten a call from a debt collector or someone promising to help you with your debts and it turned out to be a scam, bankruptcy can help.

Bankruptcy is not a scam. It offers a path to a brighter financial future.

5. You’ve Been Hit with an Unexpected Expense

Life is unpredictable. No matter how much we plan, unexpected costs sometimes arise.

Getting hit with big expenses you hadn’t foreseen is one of the main reasons people fall behind on their bills.

If a single unexpected bill stretches you too thin or you’ve hit a run of bad luck, bankruptcy may be your only option.

6. You Can’t Pay Your Debts in Full

In an ideal world, you’d pay off your credit card balance every month.

Most of us are far from an ideal world.

If you’re carrying a large balance from month to month, it might feel as though you’ll never get caught up. This gets worse when you’re dealing with high-interest rates, late fees, and other penalties.

In many cases, when it comes to credit card debt, it makes more sense to file for bankruptcy than it does to keep treading water.

7. You Lose Sleep at Night

Financial problems are one of the primary causes of stress. If your ability to manage your money is affecting your sleep or causing health problems, it’s time to consider bankruptcy.

8. You’ve Exhausted All of Your Options

Sometimes filing for bankruptcy is the best choice available to you.

Maybe you’ve tried everything else. Maybe you’re feeling like you’ve reached the end of the road financially. Filing for bankruptcy can be the solution to your problems.

How do you know when to file for bankruptcy?

When filing means your quality of life will improve and get you out from under the weight you’re dealing with, it’s time to take the next step.

If you’d like to discuss your financial situation or you have questions about how bankruptcy can help you, we’re here to help. An attorney can review your situation and help you know when to file for bankruptcy.

Contact R. Flay Cabiness, II, P.C. at (912) 417-5041 (Brunswick, GA); (912) 809-2141 (Hazlehurst, GA) or; (912) 324-3176 (Jesup, GA) to schedule a consultation.

Request A Free Consultation

Contact Us

Brunswick, Georgia
2225 Gloucester St.
Brunswick, GA 31520
Tel: (912) 554-3774 | Fax: (912) 262-0285

View Map

Hazlehurst, Georgia
20 Hinson St.
Hazlehurst, GA 31539
Tel: (912) 375-5620 | Fax: (912) 375-2681

View Map

Jesup, Georgia
198 S. Macon St.
Jesup, GA 31545
Tel: (912) 554-3756 | 888.280.1437

View Map