BE DEBT FREE

You’ve done everything you can to repay your debts — but it hasn’t worked. You’ve crunched the numbers and you don’t see how you’ll ever climb out of your debt.

Just the same, you’re worried about the effect bankruptcy will have on your credit and your future, so how do you decide if it’s time to file for bankruptcy?

Is bankruptcy really the best solution to your debt problem?

Here are a few strong indicators that bankruptcy is your best option:

• You are behind on your mortgage payments: If you are continuously falling behind on your mortgage payments because you are trying to keep up with other bills at the same time, you could put yourself in danger of foreclosure.
• If you are constantly harassed by debt collectors: If you are receiving constant letters and phone calls threatening legal action, wage garnishments, and other collection action, but you cannot afford to make payments or make a settlement offer, then it may be time to declare bankruptcy.
• If you have large debts you cannot repay: Maybe you lost your job and with that, you lost your medical insurance. You then are hospitalized after a serious accident racking up tens of thousands of dollars in medical bills. You may want to consider bankruptcy.

These are just a few examples of why someone would consider bankruptcy. Your situation is unique to you, and you should take action that is best for your financial situation. Most of the time, people in your position already have damaged credit, so bankruptcy is nothing to fear — and can actually help you get back on the path to good credit once again. Talking things over with an experienced advocate can help you learn more.