If your finances are too tight and you cannot regularly pay your bills, it is time to take stock of your real financial picture. Recognizing signs of serious insolvency can help you make the decision to move forward with bankruptcy or another option.
Some people look at bankruptcy as a reflection of personal, instead of financial, worth. This stigma has largely subsided after the recent recession. With the economic downturn, businesses and individuals turned in large numbers to bankruptcy to find a fresh start after job loss and hardship.
The economy is slowly improving. According to the United States Courts, bankruptcy filings are down more than 14 percent from last year at this time. While that is good news, it may not apply to your situation, and bankruptcy might be a good solution to your financial problems. The following conditions make a good argument for considering bankruptcy:
- Collection agencies are contacting you and lawsuits are pending
- You have difficulty making minimum payments and are more than 30 days behind on one or more bills
- You are behind on a mortgage payment and your lender has threatened foreclosure
- You have suffered repossession or are having wages or other accounts garnished or seized
- Unsecured debt, like credit cards and medical expenses, figures prominently in your debt load
- You have little savings and few assets
After debt counseling, a consolidation loan and attempts to negotiate your debt, bankruptcy is a solid option to regain financial footing. If times are still too tight, get good legal advice about the bankruptcy option that is right for you.