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Blog > 2020 > July > Warning Signs It May Be Time To File Bankruptcy

Warning Signs It May Be Time To File Bankruptcy

July 7, 2020
Time to File Bankruptcy

Should You File For Bankruptcy?

Financial troubles can happen to anyone in the blink of an eye, and substantial debt can be stressful and overwhelming. Despite how your financial difficulties started (the pandemic caused you to lose your job, you are ill and have mounting medical bills, a marital separation, etc.), these tell-tale signs could indicate it’s time to consider bankruptcy.

Your Credit Cards Are Maxed Out

While using your credit cards is a great way to establish good credit, it can also be a problem if you suddenly need to use them for everyday purchases such as gas and groceries. If your credit cards have reached their limits and you can only pay the minimum, or you find yourself opening new credit card accounts to make ends meet, Chapter 7 bankruptcy, in this case, may be the right option for you.

You’ve Depleted Your Savings

Using your savings to pay your bills or household expenses probably wasn’t an easy decision to make. When left with no financial nest egg, it can undoubtedly make you feel uncertain about your financial future. If you are still facing debt, even after using your savings to pay bills, filing for bankruptcy could be the solution, and you can start saving again.

You Need to Borrow Money to Pay Bills

It’s not easy to ask to borrow money, and most likely, you aren’t doing it because you “want” to, it’s because you are in a difficult financial situation and you “need” to. If you borrow money from friends or relatives or you’ve taken out loans to pay off other bills, speak to a bankruptcy attorney to learn your options in becoming debt-free.

Trouble Making Mortgage Payments

Being behind on mortgage payments can cause you to lose your home. If you have tried to make negotiations with your lender to no avail and are now being threatened with foreclosure, Chapter 13 bankruptcy could help save your home.

Creditors are Calling

If creditors are calling your home, cell phone, or place of employment, bankruptcy is an option to get them to stop. Once you file for bankruptcy, you are protected by an “automatic stay,” and creditors and collectors are no longer permitted to contact you.

Learn if Bankruptcy Is Right For You

Unfortunately, the COVID-19 pandemic has put many people at a disadvantage financially. The good news is that bankruptcy courts are still hearing cases during this time. If you are having difficulty paying your debts, filing for bankruptcy could be the answer and give you a fresh start.

If you are struggling with mounting debt, we can help you. Contact SM Law Group, APC today at for a free consultation and learn how you can be protected under bankruptcy laws.

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