Car, house and credit card payments can add up over time. If what you make is below or barely exceeds the debts you owe, this can be incredibly stressful. No matter a person’s career status or annual income, debt can consume their life for years. Fortunately, bankruptcy could give them the fresh start they need. While filing for bankruptcy isn’t the ideal solution for everyone, it can lift the existing debt they have off of their shoulders.
When would filing be a viable option?
If you find yourself in any of the following situations, bankruptcy may be a viable option:
- Your wages are getting garnished: If you owe payments that are months or even years past due, you’re probably getting calls from debt collectors. If you don’t respond to those requests, they may sue you to get the money. If they win, the court could mandate that your wages get garnished until the debt gets paid off in full.
- You’re struggling to pay your bills: When you owe high amounts of debt, it can be challenging to keep up on your monthly bills. Doing so can be even more difficult if you recently lost your job or fell ill. If that’s the case, you may be able to qualify for Chapter 7 bankruptcy protection.
- You’re on the brink of losing your home: Foreclosures have seen a sharp decline in recent years. However, there are still countless U.S. homeowners who struggle to keep up on their mortgage payments. If your debt is pushing you to the edge of foreclosure, Chapter 13 bankruptcy may be a sound option.
You deserve a clean slate
Filing for bankruptcy is not a decision to make lightly. But by thoroughly assessing your financial situation, you can find out whether it’s the right choice for you.