Signs It Is Time to File for Bankruptcy

Angry evicted couple worried and sitting on the floor with hand on head

It is common to hear in the news that celebrities, politicians, or even people in business file for bankruptcy. The first thing that comes to people’s mind is these people might have taken their good fortune for granted.

However, in reality, and contrary to popular belief, people from all walks of life can file for bankruptcy because it is not caused by too much spending on luxury items. In fact, a huge number of people file for such due to wrong decisions and wrong timing, or sometimes, just plain bad luck.

Do you feel like you are in the same position? Sometimes, filing for bankruptcy is the right thing to do. It is not easy and can be scary. This is the reason why you need to have a bankruptcy lawyer in Salt Lake City to help explain the situation to you and guide you through the process.

1. You are struggling financially.

A lot of people struggle financially. If you have a sick family member whose treatment is not covered by insurance, or lost your job and has not been able to find one, which caused your bills to pile up, or if you simply made wrong decisions in the past that led you to financially struggle at present, then filing for bankruptcy should be an option. It is not a solution, but it can help you get through these tough times more easily.

2. You are facing a lawsuit.

If your creditors sued you and are hunting you down day and night and calling you in your home, office, and cellphone, then it is a sign that you need a lawyer to help make them go away.

3. You use loans to pay bills.

It is but natural to find other sources of money to pay for your bills. People often use loans to pay existing bills only to end up being in bigger debts.

Declare bankruptcy before you fall into this deep pit of having a cycle of unexpected debts. The deeper you are in your debt, the harder it would be to bounce back.

4. You have exhausted your savings.

Responsible parents have a planned future for their children. A college fund or even retirement savings are common. But, if you have also used up these portions to pay for everyday household expenses just to put something on the table, then you know it is time to file for bankruptcy.

5. Your mental health is suffering.

Cutting credit card with no balance left

Do you feel anxious with every phone ring and do not want to open any mail for fear of seeing bills and creditors? Also, if you cannot get a good night’s sleep because everything that runs in your mind is all about your debt and how you would pay for it, then it is time to put a permanent solution to the problem.

Declaring for bankruptcy won’t make your responsibilities go away but can buy you ample time to find the next move. Eliminating the fear and pressure from creditors can have a huge impact on your mental health.

Filing for bankruptcy might not be the best solution, but it can be the most practical step at the moment to help you handle the issue at hand.