No one ever thinks that their debt is going to get out of control and that they can no longer afford to pay off their debt. However, it does happen. When debt starts to get out of control, bankruptcy might be the right answer. There are a few signs that it is in your best interest to file for bankruptcy.
Overwhelming Medical Bills
Car accidents or other unexpected injuries don't give you time to prepare for them; they just happen when you're least expecting them. Even with health insurance, medical expenses can add up quickly, especially in cases of prolonged treatment. If you find yourself in a position like this (you've tried payment plans or other options but you just can't seem to put a dent in your medical bills), bankruptcy could be the answer for you.
Credit Card Debt Piled Up
Federal minimum wage remains far behind the inflation rates, and even when working full-time at a minimum wage job or meager salary, it can be nearly impossible to survive. Many people use credit cards out of necessity to pay for things like dental bills or furniture. You should not be ashamed to admit you need help when the debt becomes too much for you to manage. It is very easy to have multiple credit cards, as companies line up to send you offers, and it is easy to fall behind on the minimum payments and find yourself overwhelmed by interest rates. Filing bankruptcy can help you get a fresh start in life but it is not ideal for everyone's situation. Consult a professional bankruptcy attorney, like Greg Dunn Bankruptcy Attorney, who can help determine your best route on a case-by-case basis.
Unemployed With No Prospects
If you are unemployed but find that you still have house payments, car payments, credit card payments and bills to pay, you can quickly find your head under water with no way out. If you can barely pay your bills and you have no job prospects in sight, it might be time to file for bankruptcy. Doing this will give you a chance to have a little more room to breathe while you are searching for employment.
If you think your situation would benefit from filing for bankruptcy, contact a local bankruptcy attorney for a consultation. They will be able to evaluate your situation and determine what the best course of action will be to tackle your debt and get a new start.