The decision to file for a Chapter 7 bankruptcy is not something that should be made in haste. For many people, this is considered the last resort, something that must come to pass when all else has failed. To help you understand when this type of bankruptcy is important, consider the following reasons to meet with an attorney and file the proper paperwork.
Your Credit is Getting Worse
Being head over heels in debt wreaks havoc on your credit. It doesn’t matter if the bulk of that debt was due to too-liberal use of your credit cards or a lot of medical bills piling up over the last several months. The bottom line is that the ratio of income to debt has shifted, and not in your favor. Filing for a Chapter 7 bankruptcy is one way of getting back on your feet and beginning the process of repairing your damaged credit.
Nothing Else Works
In the past, you’ve tried all sorts of financial strategies to reverse the situation and regain control of your finances. You met with a debt counselor, looked into the idea of a consolidation loan, and even thought about going through a service that would set up repayment plans with your creditors. For one reason or another, all those efforts led to nowhere.
At this point, you don’t really see any way to avoid filing for the bankruptcy protection. Unless something is done soon, you will be facing garnishments and other legal actions that will destroy what little credit you have left.
You Are Tired of the Pressure
There is no doubt that owing a great deal of money can create significant stress. Between the constant collection calls, the threatening letters you receive in the mail, and the general feeling of being in an inescapable situation, you are physically and mentally exhausted. At this point, it is no longer just about the state of your finances. It is also about your health.
If something doesn’t change, you are at risk of developing all sorts of illnesses, both physical and emotional. The only way to prevent this from happening is to contact an attorney and determine if you are eligible for bankruptcy protection. Assuming that you meet the criteria established by the state, starting the action as soon as possible will lift the weight from your shoulders and make it possible to start thinking about the future again.