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When It’s Time to Consider Filing for Bankruptcy

Despite its negative reputation, filing for bankruptcy can be extremely helpful for those struggling with serious debt. If you’re having financial troubles, here are a few signs that bankruptcy may be the best solution.

You can’t feasibly pay all of your bills on time – If you consistently make late payments or no payments because you do not earn enough income, bankruptcy can help eliminate certain debts such as credit cards and collections accounts.

You use loans or credit cards to pay for necessities – Borrowing money that you can’t pay back will only make your debt worse. You also risk losing important possessions like your home or vehicle.

You’re being threatened with legal actions by debt collectors – If creditors intend to sue you or garnish your wages to get their money back, filing for bankruptcy before legal action is taken can halt the process before it starts.

Before considering bankruptcy, talk to a credit counselor to see if a Debt Management Plan would be a good solution. You may be able to reduce payments, interest on accounts and stop collection calls.

If you’re in need of credit counseling or debt management assistance, contact American Financial Solutions today. Our certified counselors will help you develop a plan for getting out of debt and your financial future. 

Published Mar 14, 2017.