Making decisions concerning daily life events is hard enough. Sometimes just choosing the right restaurant for the night is a struggle. When it comes to financial decisions like whether to file bankruptcy, the stress is even worse. It always helps to have a lawyer who both has experience with bankruptcy and is aware of your financial situation to help figure out the best path forward.
However, if you have been avoiding your finances and putting off meeting with a bankruptcy lawyer, it may be time to take the leap that will enable you to get on with your life. Here are some signs that it’s time to look into filing bankruptcy.
Debt Payment Exceeds Cost of Living
Are you spending more each month on your debts than you are to survive? Unless you are homesteading and living a very frugal lifestyle by choice, this could be a sign that you need to file bankruptcy. Your past should not cost you more in expenses than your present costs you to live. If you’re finding it difficult to manage basic living expenses like food and rent because you are trying to pay off debts, it’s time to consider other options.
Balances Are Not Getting Smaller
If you sit down and do the calculations, does your credit situation improve faster with bankruptcy than by paying off your debts? With the exception of a home loan, your debts should not take longer to pay than it takes for bankruptcy to come off of your credit report. If you are struggling to make your payments, but the balances aren’t decreasing because of interest charges and late fees, it may be time to consider a new debt management strategy or bankruptcy.
You Can’t Meet Minimum Payments
If you are unable to meet minimum payments on your lines of credit, that means your debt only increases each month without you gaining anything from it. This is because all of your payments are going toward the interest rather than the principal, and the interest is only piling up as a result. In short, your situation is only getting worse instead of better. If you are not expecting to see a significant increase in income anytime soon, bankruptcy may be the better choice than your current payment options.
Talk with a Bankruptcy Lawyer
Talk with your lawyer about your current situation. Consider future income projections and ask your lawyer to help you understand all the facts so that you can make an educated decision. Bankruptcy may not be your lifetime goal, but it may be the best path forward to help you reach your ultimate goals. You can get more information about Chapter 7 bankruptcy here.
For debt management help and to receive answers to bankruptcy questions from our lawyers, call (813) 940-5120 for a free initial consultation.
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