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2 clear signs you need to file for bankruptcy

On Behalf of | Feb 3, 2023 | Bankruptcy | 0 comments

If you are caught up in debt, and there are no signs that your financial situation is likely to change for the better any time soon, one of the options you might consider is approaching your creditors to write off your debts. If this is not possible, and your creditors are in hot pursuit, then bankruptcy can help you write off your debts or come up with a working repayment plan.

The decision to file for bankruptcy is one that you do not want to take lightly. One of the most common mistakes people make is waiting too long to begin the process. So how do you know it is time to declare bankruptcy?

Here are two signs you need to declare bankruptcy.

Your budget isn’t holding up

Having a budget is a good financial management habit. However, if you are routinely turning to your credit cards or payday loan providers to meet basic obligations, then your budget isn’t working. The further you walk down this road, the more troubled your financial situation will be. Declaring bankruptcy can help you discharge some of your debts and work out a repayment plan that suits your current financial situation.

You’ve had an unexpected expense

Life is full of uncertainty. No matter how great of a planner you are, an unanticipated cost might pop up. Perhaps, you’ve been hit by a costly divorce. Or, you have been diagnosed with a medical condition or an injury that requires a lot of money to treat. These unexpected life expenses can punch a huge hole in your finances. If this happens, you might want to file for bankruptcy.

Bankruptcy can be a welcome relief when you’re caught up in debt or when your finances are in shambles. Find out how bankruptcy can help you turn a new leaf on your finances.