Is it time to think about bankruptcy? 3 signs

On Behalf of | Dec 21, 2023 | chapter 7 |

Bankruptcy is a process that can help you relieve large amounts of debts related to credit cards, medical fees and other financial situations. While bankruptcy may not be your first option, it may be the only feasible option in the end.

If you’re unsure if bankruptcy is right for you, here are some situations that may cause you to reconsider:

You tried to pay off your debts

The first thing you may have tried when you realized that your debt became unmanageable is to pay it off. You may have created a budget that cut back on things you didn’t necessarily need. Or, you may have picked up more work. However, it appears that your debt may be with you for many years. If budgeting doesn’t help, you may need to consider filing for bankruptcy. 

You’re facing high-interest and late fees on credit cards

Part of the issue when using credit cards is that many of them have high-interest rates. If you can’t meet those high-interest rates as you pay off your credit cards, you may face late fees. Late fees can increase how much debt you’re obligated to pay. But, if you can’t pay your late fees, they may only get worse over time. Bankruptcy may be your only choice as you battle interest and late fees.

You suffered an injury and have lots of medical debt

Americans face a growing issue as more people suffer from medical debt. An injury may have been unavoidable and, as a result, you sought medical help. But, you’re now expected to pay thousands of dollars worth of medical bills. Not only has the cost of medical care put you in a financial bind, but your injury may have cost you your job. As a result, you may need to file for bankruptcy. 

Bankruptcy is a complicated process. If you’re considering filing for bankruptcy or have questions, then you may need to reach out for legal guidance.