Life isn’t fair sometimes. It seems like everything comes at you at once, and you can’t get a break.
Overwhelming debt can make you feel like that. It doesn’t matter how you got here – medical expenses, job loss or overspending – but you need a way out. How do you know if filing for bankruptcy is the right option for you? Bankruptcy is a legal process overseen by federal courts that helps individuals and businesses eliminate or restructure their debt. It provides relief to people who can no longer pay their bills and helps them make a fresh financial start.
Your situation probably didn’t happen overnight. It likely built up slowly over time before becoming an unmanageable crisis. If any of the following signs sound familiar, it may be time to explore bankruptcy options:
You can barely (or can’t) make the minimum payments
When you pay only the minimum due on credit cards and loans, most of the payment goes toward the interest, with very little going toward the principal. You get caught up in a vicious cycle where your debt hardly decreases, and you could be stuck making payments for years.
If you’ve reached the point where even making the minimum payments becomes a struggle, or you’ve started missing payments, your debt has likely become unsustainable.
You’re using credit cards for necessities
Credit cards are meant to be a convenience, not a means of survival. If you find yourself paying for essential items like groceries, utilities or rent on credit, then it’s an indication that your income is no longer sufficient to cover your basic needs. You’re going deeper into debt just to get by. Now, in addition to your existing financial obligations, you’re adding high-interest, compounding debt.
Creditors are constantly contacting you
Do you find yourself screening your calls because they may be debt collectors? Are you hesitant to check your mail because it’s filled with past-due notices and letters that threaten legal action? These are clear signs that your debt situation has reached a critical point.
Your debt is affecting your health
Financial stress is a heavy burden, and at times, you feel you can’t breathe. Money worries can lead to anxiety, depression, insomnia and other serious health issues.
Recognizing the signs of unsustainable debt is the first step toward finding a solution. The next step is to contact a legal professional. They can discuss your options and lead you through the bankruptcy process. You don’t need to live with this daily stress. Bankruptcy may provide exactly the relief you need.
