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When Bankruptcy Becomes Necessity: 5 Signs That It May Be Time to File

May 28, 2018

Choosing to file for bankruptcy is never easy. In fact, it sometimes takes years of hardship to come to the inevitable conclusion that your best shot at freedom – a fresh start – is to take the leap.

But how do you know if the time is right?

Here are the most common signs that it may be time to for bankruptcy.

#1: Debt Collectors Have Come Knocking

If you fail to repay your debts in a timely manner, your account will eventually be turned over to a collection agency. Failing to respond to a collection agency could result in numerous calls and letters, damage to your credit score, and (at some point) a lawsuit. If you lose this lawsuit, you’ll owe more than you did before.

When you file for bankruptcy, you’ll get legal protection against debt collectors in the form of an automatic stay – which means the collector cannot take action against you until your bankruptcy case has been discharged or dismissed.

#2: You Can’t Pay Your Bills

Are you stuck using credit cards to pay the bills? Do you find yourself going further and further in debt on a weekly or monthly basis? When you no longer have enough sustainable income to survive, filing for bankruptcy has become a necessity.

#3: Your Income Is Being Garnished

There are serious penalties when you fail to pay debt collectors. Because collectors rarely get paid through lawsuits, they sometimes decide to request an income garnishment instead.

If a court order for such a garnishment is provided, your employer will be required to hold money from your check until your debt has been repaid. This can make it impossible to pay bills and minimum payments for other debts.

#4: You Feel Scared, Frustrated, or Depressed

There are many reasons to file for bankruptcy. The most compelling reason, however, is peace of mind. Finally, you’ll know exactly how much you owe. You’ll have enough money to pay your bills. And you won’t be trapped in a downward spiral. This will improve your mood, your relationship with friends and family, and your financial well-being.

#5: You’ve Lost Track of How Much You Owe

It happens slowly. One credit card payment turns into two. Two payments turn into four. You’ve lost track of login information and receipts. Now, your expendable money is gone and you have no idea how much you actually owe.

Instead of letting this spiral continue, consider filing for bankruptcy. Some forms of bankruptcy forgive unsecured debt, freeing you from the bonds of your credit cards.

Contact an Experienced Colorado Bankruptcy Attorney for Assistance

If you’re thinking about filing for bankruptcy, contact an experienced Colorado Springs bankruptcy attorney at Kinnaird Law by calling today. We recognize the intensity of your decision and admire your courage, and will collect essential paperwork, answer questions, and simplify the process. Our team is fully dedicated to your financial and emotional well-being, so that you have the time to focus on what matters most.