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When Is It Time To Accept Debt And File For Bankruptcy?

On behalf of Trenton Grand of Grand Law Firm on Wednesday, August 29, 2018.

Deciding to accept that you need to file bankruptcy can be intimidating. Americans place a heavy stigma on bankruptcy, but that does not mean it is uncommon. While bankruptcy can be scary, it is a way that many individuals receive a fresh start.

Bankruptcy is not the end of the world and you are not alone. In 2016, Louisiana had one of the highest rates of bankruptcy, and in 2017 there were close to 800,000 total bankruptcies. While bankruptcy may be more common than you realize, how do you know if you are in a position where filing is your best option?

Your home is on the verge of foreclosure

Many individuals struggle to pay their mortgage. It is common, especially in the economic market today. If you are in a position where foreclosure is a fast-approaching possibility, filing for bankruptcy could help you out.

You and your spouse are divorcing

Paying for a divorce can be tremendously expensive, especially if you and your soon-to-be ex are having trouble agreeing on terms. Court proceedings and divorce lawyers eat up a lot of funds, and it could have you looking toward bankruptcy as a form of relief. Bankruptcy can, indeed, help you find relief from the debt that you may be saddled with during and after a divorce.

You pay off debt with other credit cards

If you find that you are paying off one credit card with another, it may be time to think about filing for bankruptcy. Similarly, if you find that you can only pay for necessities with a credit card, instead of savings or monthly income, filing for bankruptcy can help get you out of the deep end.

You are months behind on paying bills

When you are multiple months behind paying your credit card or other bills, it can take a heft hit to your credit score as well as your lifestyle. Filing for bankruptcy may help you get out of this situation and give you a fresh start.

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