Even in today's economy, many people in debt see bankruptcy as a bad word, a word that, if attached to their names, says, "I failed." They shy away from bankruptcy, waiting until they are far over their heads in debt before they consider it as an option. Then, they think again, only to find that bankruptcy is not the nightmare it appeared to be. Instead, it brings about a new day - the financial relief needed to start anew.
For many, the relief could have come sooner. How do you know, then, if it is time to file bankruptcy? How far in debt do you need to be?
One question you can ask yourself is whether you would be able to pay back your debts in three years. If you cannot, and your debts could be discharged through bankruptcy (student loans are difficult to discharge), then you may want to considered filing for bankruptcy. Other considerations include:
- Do you face significant credit card debt? Are you able to make more than double the minimum monthly payments on that debt?
- Are you facing home foreclosure?
- Have you been sued by a creditor?
- Has a creditor threatened repossession or wage garnishment?
- Do you have unpaid medical bills?
- Have you thought about borrowing against your retirement to pay down your debt?
- Are you still paying on the deficiency of old debts?
- Has the economy made it difficult to keep your business running?
If any of the above apply to you, now may be the right time to consider bankruptcy. You are not alone. Countless other people are facing debts similar to yours. Thankfully, there is another option, an option that could lead to a much brighter financial future: Filing for bankruptcy.
Learn more about bankruptcy by visiting our pages on bankruptcy in Texas.