Lawyer Referral Service

LRS Blog

Posted by: Maricopa Lawyers on Dec 5, 2016

Filing for bankruptcy can seem scary and overwhelming, and tends to be something most people try to avoid. But in some situations bankruptcy can save you from a never ending stream of financial stress. If you’re feeling hopeless about your financial situation, bankruptcy might be the right choice for you.

Signs You Should File For Bankruptcy

If you’re at a crossroads and considering bankruptcy, these five warning signs will help you come to a decision.

You’re living paycheck to paycheck and only making minimum payments

If you have to spend every penny from your paychecks on bills and other necessities, how will you get out from under your debt? If you have extra money each month, then putting it towards your high-interest balances may help you avoid bankruptcy. But if you have nothing extra at the end of each month and your interest keeps piling up, bankruptcy will help you get rid of your never ending debt.

You’re behind on your mortgage 

If you’ve gotten too far behind on your mortgage payments you may not have any hope for a solution. If there’s a possibility that you could lose your home, then filing for bankruptcy might be the only way to save it.

You use credit cards every month for the same bills

You’re just adding interest to your bills by paying them with credit cards. This can become a vicious cycle that’s difficult to get out of. When this is happening with no resolution in sight, you may benefit from bankruptcy.

Bill collectors are calling you

Debt never disappears. You may be able to avoid collector calls for a while, but it will always be there. You’re debt may even be higher than you realize. When you have so much debt that you can’t make your payments, bankruptcy can actually help you get a handle on it.

Your finances cause anxiety, loss of sleep or physical sickness

When you feel so weighed down by your financial problems that it’s weighing on your mental health it’s time to consider your options. Bankruptcy can help you find a way to pay off your debts or even wipe it out completely. Don’t let your debt control your life.