Millions of Americans go through financial difficulties each year. One of the remedies you can opt for if your finances are in disarray is declaring bankruptcy. A Chapter 7 bankruptcy can help you discharge unsecured debts like credit card and medical debts. But exactly when should you file for bankruptcy?
If your answer to these questions is affirmative, then you need to consider declaring Chapter 7 bankruptcy as soon as you can.
1. Have you maxed out your credit cards?
Exhausting your credit card limits is a crucial bankruptcy tipping point. As soon as you run up the allowable balance on your credit card, you will ultimately hit the wall. Consequently, you will have a difficult time increasing your limit to gain approval for more loans.
Relying on credit cards to pay off basic expenses like gasoline and groceries can also be a warning sign that you need to work on your financial health.
2. Are creditors giving you sleepless nights?
It’s okay to use your credit card to pay off an emergency like a visit to the ER. However, it becomes a problem if you are constantly receiving calls from your credit card company. This could be indicative that you are struggling to keep up with your payments. Persistent creditor calls can also be a great source of stress and anxiety.
Filing for personal bankruptcy is a big deal. While you can use it to alleviate your debt and turn over a new leaf, financially speaking, it can also impact other aspects of your life. Find out how you can protect your rights and interests while declaring Chapter 7 bankruptcy.