Deciding to file for bankruptcy is a very personal, and sometimes difficult, decision to make. To help you decide if this is indeed the best course of action for you to take, you may want to spend a little time reviewing the following points. This way, you will know whether it is time to make that phone call to your local trusted bankruptcy attorney.
You Cannot Get Your Income Level Above Your Level Of Debt
Take a moment to write down all of your recurring debt. This includes everything from the obvious monthly mortgage payment to how much you actually spend on things such as toilet paper and dish soap every month. It is time to be extremely detailed about the amount of money your household spends every month. Compare the total amount of your expenses to the amount of money that you bring in. If you do not make enough money, you need to take action. You might be able to get a second job or consolidate some of your debt into smaller monthly payments. However, if none of the options out there will truly raise your monthly income level to where it needs to be, you might want to consider filing for bankruptcy.
The Number Of Collection Calls Is Causing You Personal Distress
The occasional debt collection call might not bother you. However, if you are starting to get daily calls, from multiple creditors, and several times throughout the day, it might take its toll on you. If you are starting to feel your heart race when the phone rings, or find yourself simply turning it off during the day and evening to avoid having to face the stress of it all, you might need to file bankruptcy. After all, if you have the ability to make appropriate payment arrangements to get caught up with your bills, the non-stop collection calls would stop.
You Are In Danger Of Lawsuits And Wage Garnishments
Some creditors can and will sue you in court. They can put liens on your property or in some cases, have your wages garnished. These are things that you will want to avoid at all costs, as they put a real damper on your ability to survive day-to-day. Liens placed on your property can also lead to a foreclosure, which is undesirable, especially since you may have the option to keep your home even after filing for personal bankruptcy.
As you can see, there are certainly a few good signs that may indicate that it is time to consider filing for bankruptcy. If you are still not sure, simply call, or check out the site, of a trusted bankruptcy attorney to schedule a consultation. He or she will evaluate your debt, income, and personal situation and will give you advice as to whether this is the best solution for your current needs.