If you struggle to make ends meet each month, you may have already pondered bankruptcy. For obvious reasons, this isn’t an easy decision to make, and you may find yourself going back and forth on filing.
Whether you’re on the fence or on either side of it, weighing your options never hurts. To assist you in your decision, here are some telltale signs you may want to consider filing for bankruptcy.
After you examine the following points, you should speak with a qualified bankruptcy lawyer to walk you through the process. At The Elmer Law Firm in Tuscaloosa and Jasper, Alabama, we have the knowledge and experience you need on your side when considering bankruptcy.
You’ve Run Out of Savings
This is an all-too-common scenario that plagues much of society, especially if you recently lost your job. And due to the pandemic, more people have had no other recourse but to dip into their savings to cover basic living expenses.
But the pandemic isn’t totally to blame. Reliance on all too easy to get credit card has become epidemic in recent decades. Not only for large or unanticipated expenses, but for common every day purchases (more on this in the next section). If you have reached the limits of your cards you either have or will soon exhaust your personal savings. The average amount of savings on the American household has decreased by over 15% since 2001, despite the decrease in the purchasing power of the dollar. Most Americans have had perilously little to fall back on even before the pandemic. If this describes your current financial state, bankruptcy may be your best option.
Of course, there are other factors to consider, too. So keep reading to see if you’re in a position to bounce back financially or if bankruptcy makes more sense.
Your Credit Card Use Has Skyrocketed
Do you find yourself using your credit card for everyday purchases? Rather than pay with cash or your debit card, you use your credit card more than you should. Obviously, there’s a reason that you’re turning to your credit card, and that’s likely that you’ve run out of money.
If so, it’s a clear indication that your financial standing isn’t in the best condition. As such, bankruptcy may be the best option to turn things around for you going forward. While bankruptcy is not the right option for every person in every situation, it is a very powerful tool that a competent bankruptcy professional can review for you. If you would like to review your options we are here to do so with you.
You’re Taking Out Loans Just to Pay Bills
If you’re borrowing money, that’s never a good position to be in. Borrowing money from family and friends is bad enough, but at least you (typically) don’t have to worry about interest, fees, and collection calls if you don’t pay them back on time.
Taking out loans from banks, however, can quickly land you in hot water. The same is true for payday loan businesses and finance companies. If borrowing money is your only way to keep your lights on, it’s time to consider filing for bankruptcy.
Your Bills Continue to Pile Up
If your bills are coming in at a rate that leaves you unable to pay them all, it’s understandable if you feel stressed at the sight of more arriving in your mail. You may even find yourself paying the most pressing bills and letting others go until the last possible minute.
You’re Afraid to Open Your Mail
Do your fears of creditors and mounting bills keep you from opening your mail? The only reason you’d have not to open your mail is due to an inability to make the necessary payments. As such, you may need to rethink your strategy and consider speaking with a qualified bankruptcy attorney.
At The Elmer Law Firm, we carefully examine your financial status and work with you to make sure that we come up with a viable solution for your situation. If it is filing for bankruptcy or negotiating with a particular creditor, we will come up with the best solution for you.
You’re Behind on Essential Payments
Are you currently behind on rent or mortgage payments? Maybe your car is in jeopardy of repossession. Government actions in the wake of the pandemic has given people some breathing room and relief from paying certain creditors for varying lengths of time. These payments can’t go unpaid forever however, so it’s time to get serious about coming up with a plan of action. While moratoriums and deferments may go on for a while more, they will end. The question is how deep of a hole will you be in before you address your situation.
Therefore, it’s time to start thinking about the future. When you meet with an experienced bankruptcy lawyer, they can help you determine what makes the most financial sense for you and your family.
You Have Creditors Chasing You
When you’re overwhelmed with bills and loans, every call that comes in can make your heart race until you see who it is. You may even avoid answering your door out of fear that it’s someone collecting on a loan.
This is no way to live. Bankruptcy can eliminate your stress and anxiety and give you back your freedom.
You’re Losing Sleep
One of the most notable signs that you should consider filing for bankruptcy has to do with your quality of sleep. If your inability to pay your mounting bills keeps you up at night, it’s time that you seriously consider reviewing your options.
While reaching out to speak with a bankruptcy attorney is a big step, the peace of mind and freedom that comes with bankruptcy is often worth it in the end. For many people, bankruptcy allows them to refocus their plans for life moving forward.
It is going to take lots of hard work and dedication, but you are essentially getting a clean slate to work with. Contact The Elmer Law Firm today to schedule a free consultation to discuss your options.
You’re Considering a Consolidation Loan
Debt consolidation may seem like a solid plan. The problem, however, is that you run the risk of having to pay the consolidation company a sizable fee. What’s more, these plans can take a long time to pay off your debt, leaving you in financial straits longer than you anticipated. And this option only works if you repay all of your creditors in full, which you may not have to do in certain circumstances with bankruptcy relief.
This amounts to more stress than you need, as you’re likely already struggling with anxiety and maybe even depression.
Contact The Elmer Law Firm Today
Do any of the above signs reflect your life? You may feel like there’s no viable solution to ending your debt and stress. But thanks to The Elmer Law Firm, you have a trusted team of bankruptcy experts who will work directly with you to determine whether bankruptcy or another avenue if your best path forward.
We encourage you to contact us for a free consultation. Our experts are happy to discuss the best course of action based on your financial needs.