5 Signs that It’s Time to Consider Filing for Bankruptcy

August 20, 2015

Many people are carrying debt month to month. Whether this is student loan debt, credit card debt or some other debt obligation, diligently paying more than the minimum monthly payment can be key to resolving that debt and improving your overall financial situation.

For some people, however, bills may be overwhelming, and getting by each month may be more of a struggle. If you are among those who are fighting to get by, below are some indications that it may be time to consider bankruptcy to get a financial fresh start.

Bankruptcy May Be Right for You If…

  1. If you are struggling with debt, here are some signs it may be time to consider bankruptcy and a financial fresh start, a Denver bankruptcy lawyer explains.

    If you are struggling with debt, here are some signs it may be time to consider bankruptcy and a financial fresh start, a Denver bankruptcy lawyer explains.

    You can’t pay all of your bills month to month – We’re not talking about one month of money being tight because, for instance, you had one large unexpected bill arise (like a vehicle repair bill, for instance). We’re referring to situations in which people are not able to pay all of their bills for a few months on end. When this occurs, filing for bankruptcy can be one the best ways out of snowballing debt.

  2. Your debt continues to grow despite your best efforts to stop it – Similar to the above, when debt increases (either because you can’t pay it, or as you pay it, you are accumulating more of it), filing for bankruptcy is an effective way to stop the cycle of debt from continuing.
  3. You are considering taking out a risky, high interest loan – Are you thinking of taking out a payday loan or an auto title loan? If so, change up your thinking and consider bankruptcy instead, as these loans typically only plummet people into more debt, possibly putting their important possessions (like their cars and homes) on the line as well.
  4. Your income has decreased or completely dried up but your debts haven’t – Debt can be manageable when people have a sufficient and reliable income to draw from. When the income stops or is reduced, however, being able to repay debt can be impossible; what’s more is that penalties for non- or late payments can start adding up, increasing the overall debt obligations. In these circumstances, filing for Chapter 7 bankruptcy can be the best solution to getting out from under crushing debt.
  5. Creditors are threatening you with legal action – Have you received notice that a creditor is going to sue you, garnish your wages or possibly even try to repossess your assets?

    If so, filing for bankruptcy before creditors proceed with these actions can help you avoid such penalties (as a court order known as an ‘automatic stay’ will immediately take effect as soon as you file for bankruptcy, and this order will halt any action a creditor may be trying to take against you).

Denver Bankruptcy Lawyer Jon B. Clarke Can Help You

Are you ready to find out more about your best options for relieving your debt issues? If so, contact trusted Denver Bankruptcy Lawyer Jon B. Clarke today.

You can complete our Business or Consumer Debtor Analysis Form or call our firm at (866) 916-3950 to start getting answers. You can also email us using the contact form on this page.

From our offices based in Denver, Castle Rock and Greenwood village, we take pride in providing people throughout the state of Colorado with the highest quality debt relief legal services.

Categories: Bankruptcy