December 18


Signs That You Should File for Bankruptcy

By Will Robins

December 18, 2018

Bankruptcy Law Attorneys

We have all experienced ups and downs with finances. Some of these highs and lows are more extreme than others. People struggle with financial situations for countless reasons. There may be an unexpected job loss or medical bills resulting from a car accident. Whatever the reason, sometimes we end up under such financial stress that we need help if we ever have the hope of digging ourselves out. That is where bankruptcy comes in. Bankruptcy is a legal tool for people that have found themselves in such a poor financial state that they need some help getting a fresh start. Filing bankruptcy, however, is an involved process and comes with certain consequences. It is not for everyone. Look for these signs that you may need to file bankruptcy now or in the near future.

Signs that You Should File for Bankruptcy

There are certain telltale signs to be aware of that will point to whether you need to start considering filing for bankruptcy. Some of these signs include:


  • You have spent through your savings:  There comes a time when you may need to dip into your savings. Needing to spend through all of your savings to pay your bills, however, is a different story. If you have cashed in your emergency funds and spent your savings, you may want to consider bankruptcy.
  • You have been charging almost everything on your credit card:  When your expenses consistently exceed your income, people will often turn to credit cards. When you are using your credit card for everyday necessities such as food and gas, because you do not have the cash on hand to pay for it another way, this is a sign that bankruptcy may be in your future. Once the credit card balances start increasing, a financial hole can be quickly dug. This is especially true considering some of the extremely high interest rates many credit cards carry.
  • You are borrowing money to pay your bills:  You may have asked for a loan from friends or family. You may have applied for a personal loan to pay your bills. In either case, this is a sign that you should file bankruptcy. It is more evidence that you are living outside of your means. You do not have enough incoming funds to pay necessary expenses.
  • You dodge phone calls and leave mail unopened due to being pursued by creditors: When you do not pay your bills, they get sent to collections agencies. Debt collectors will send you correspondence via mail and will persistently call you to try and get the money they are owed. It is a constant and uncomfortable reminder that you cannot pay them what they are owed. For this reason, you may be employing several avoidance tactics to try and turn a blind eye to the situation at hand. When debt collectors do not get a response from the debtor, however, they may choose to file a lawsuit in order to force payment. A debt collection lawsuit can add further financial stress to your situation. Filing for bankruptcy will provide some legal protection against debt collectors pursuing further recourse against you for failure to pay the debt owed.
  • Your bills keep piling up: If your debt is increasing and you are needing to evaluate which debts or minimum payments you are able to make each month; you may need to consider bankruptcy. If you cannot pay your bills and are turning to credit cards to cover expenses, you are digging yourself into further debt. You may then be struggling to pay for everyday living expenses and make the required debt obligation payments. At this point, you should consider filing for bankruptcy.
  • You have not been able to pay your housing costs: Falling behind on paying your mortgage or rent is particularly troublesome. At this point, you are at risk of losing your home. Filing bankruptcy often helps people in this situation catch up on their mortgage payments so that they are able to keep their home.
  • You are constantly anxious about money: Let’s face it, most of us carry some anxiety about finances. However, if this anxiety is persistent to the point where it is effecting things like your sleep and your health, it may be time to reach out for some serious help and consider something like bankruptcy to help get your finances back on track

Bankruptcy Law Attorneys


Bankruptcy gives people a fresh start. While it is not right in every case, it can be the boost needed to get you out of an inescapable financial hole. Contact a trusted bankruptcy attorney to discuss your options.


Will Robins

About the author

Husband and Father, Will focuses on family first under God. If you are searching for an engaged audience, the kind we all dream of, then you have found the right website. Will uses a personality with amazing salesmanship in his teaching. He focuses on how successful websites have grown their viewers and engagement.

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