As with many important decisions in life, there is no obvious warning that it’s time to file for personal bankruptcy. As your debts pile up and you are struggling just to pay off the interest every month, you may be wondering if bankruptcy is the right move. After all, there are alternatives to bankruptcy out there. How do you know when Chapter 7 bankruptcy or Chapter 13 bankruptcy is the best way for you to get out of debt?
Here are five signs you should consult a bankruptcy attorney:
- You are taking a cash advance from one credit card to pay the bill on another card.
- Your credit card company has raised your interest rate because of missed payments.
- Creditors are threatening to garnish your wages.
- You were forced to take money out of your retirement account to pay off debt, or you are thinking about it.
- You have taken an extra job, but it is not making much impact on your debt.
Filing for bankruptcy is a big decision. Chapter 7 bankruptcy or Chapter 13 bankruptcy can reduce or eliminate most debts, stop debt collector harassment and help you get past the stress and worry that may be controlling your life right now. But filing for personal bankruptcy will also affect your credit score and can take years to complete.
You are not alone
This is not a decision to take lightly. Fortunately, you do not have to decide by yourself. Consulting with a bankruptcy attorney will give you the information and advice you need to make a smart choice that reflects the personal needs of yourself and your family.