4 Signs It’s Time to Consider Filing for Bankruptcy

June 30, 2015

Financial stresses can plague people from time to time, but when these stresses don’t dissipate and they cause you to become financially overwhelmed, it may be time to consider some more formal debt relief options, including bankruptcy.

Below are some of the more common signs that it may be time to reach out to an attorney and find out more about how bankruptcy can help you.

You May Want to Consider Bankruptcy If…

1 – You can’t afford to make your monthly bill payments on time.

Wondering if it’s time to file for bankruptcy? If so, check out these signs that bankruptcy may be right for you, a Colorado Springs bankruptcy lawyer explains.

Wondering if it’s time to file for bankruptcy? If so, check out these signs that bankruptcy may be right for you, a Colorado Springs bankruptcy lawyer explains.

Are you struggling month to month to make your bill payments? Are you regularly behind on more than one of your bills? If so, this can be a sign of persisting financial trouble. In fact, if you are in the cycle of paying bills late because you can’t afford to pay these bills when they are due, the chances are that:

  • You are going to spend even more money on late fees.
  • You may experience an interest rate hike on the debts you are late paying (as creditors can have this option for certain lines of credit).
  • Your debt situation will only continue to snowball.

By filing for bankruptcy, however, people facing this situation can eliminate their debts, effectively obtaining a financial fresh start.

2 – You are considering taking out a payday loan to help cover your bills.

Are you thinking about taking out a payday loan (or an auto title loan) to help you make bill payments? If so, this may be another red flag that your debt situation is out of control and that it’s time to consider a more powerful relief option like bankruptcy.

In fact, if you are considering a payday loan, you should be aware that these types of loans usually end up worsening people’s debt situations (as these loans can come with astronomical interest rates, which can start compounding within a month or so of taking them out). So, before, you possibly intensify your debt situation via a payday loan, it may be time to think about options like bankruptcy.

3 – You have dipped into your retirement fund to help cover your bills.

If your debt has become so overwhelming that you are pulling funds from retirement accounts to try to cover your bills, again, it may be time to think about filing for bankruptcy.

This is because, when pulling funds from retirement accounts, you may be paying way more than you need to in order to cover your debts now (as you may be paying penalties for early withdrawals, not to mention the fact that you are potentially depriving your future self of necessary funds).

4 – You have received notices that your creditors are going to garnish your wages or sue you.

Are creditors moving forward with punitive action against you? Have you received notices of impending lawsuits, wage garnishments, repossessions or even foreclosure?

If so, this may be one of the biggest red flags that it is time to move forward with a bankruptcy case, as filing for bankruptcy puts an automatic stay in effect. This court order will stop creditors from proceeding with such punitive actions, effectively preventing lawsuits, garnishments, repossessions and foreclosures.

Colorado Springs Bankruptcy Lawyer at the Law Office of Jon B. Clarke, P.C.

Are you ready to find out more about your best options for debt relief? If so, it’s time to contact a trusted Colorado Springs bankruptcy lawyer at the Law Office of Jon B. Clarke, P.C.

To find out more about your best debt relief options, as well as how we can help you obtain the financial fresh start you need and deserve, contact us today by calling (303) 779-0600 or by emailing us using the contact form on this page. We also encourage you to complete our Business or Consumer Debtor Analysis Form so that we can provide you with professional advice that is as specific and helpful as possible.

From our offices based in Denver and Greenwood Village, we provide people throughout Colorado with the highest quality debt relief legal services.

Categories: Bankruptcy