Getting What Is Rightfully Yours

How To Know If It's The Right Time To File For Bankruptcy: 4 Signs

16 July 2020

Estelle Mathieu

Bankruptcy is a legal way to help you get out of debt. You may be in over your head with debt and unable to make any headway to pay off your debts. If you are in a situation such as this, bankruptcy is an option for you. If you still aren't really sure if the time is right for you to file for bankruptcy, read on for a few signs to help you decide if the time is right.

1. You Can't Even Afford Groceries

If you are unable to even afford basic necessities in your day to day life, it's time to file for bankruptcy. You should at least be able to pay for the basics such as groceries, electric, gas, water, and sewer. If you can afford these things, can afford your bills, but just don't have a lot of extra money for other things, it may not be the right option for you — you just need to control your spending. You need to be able to afford the basic necessities in addition to your bills.

2. You Are Being Sued

If you are being sued, are receiving an eviction notice, a repossession notice, or some other type of legal action is being taken against you that you are definitely not going to be able to afford, you may be able to file for bankruptcy to alleviate the debt and not have to pay for the court costs and other costs associated with the debt. Some things you cannot file on, such as child support, tax debt, or student loans. 

3. You've Lost Your Income

If you've lost your source of income and don't see any quick fix in your income status anytime soon, you may want to consider filing for bankruptcy. Income loss is one of the biggest reasons for filing for bankruptcy. Even if you are getting unemployment, it may not be enough for you to cover your debts, which is why filing for bankruptcy may be a good option for you.

4. You've Exhausted All Means

If you've done everything you can to pay your debts, including emptying savings accounts, cashing in retirement funds, and even started borrowing money from others just to make ends meet, it's time to file for bankruptcy. You shouldn't dig yourself even deeper into debt to try to get out of debt, discuss filing bankruptcy with a bankruptcy attorney instead.

If you aren't sure if it's time to file for bankruptcy, use the information above to guide you. Make an appointment today with a bankruptcy attorney service.

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