If you are having a hard time financially, you may wonder if bankruptcy can help with your situation. Filing personal bankruptcy can eliminate your debts and help you get a fresh financial start, and this is a legal process many people undergo every year.
According to the United States Courts, bankruptcy filings in 2020 totaled 544,463. Although bankruptcy is a common process, you may wonder if your situation warrants moving forward with this process.
You cannot manage regular expenses
If you used to have a savings account to help with unexpected expenses, but you have drained this account, you may want to consider filing for bankruptcy. This may be beneficial if you find yourself taking on more and more debt to manage regular expenses, like your mortgage, gas and groceries.
Creditors are pursuing you
When you do not make your payments, creditors may start calling your work phone, home phone and cellphone and threatening you with additional consequences. Bankruptcy can put an end to this constant creditor contact.
There is a reason behind your financial struggles
There is a myth that people who file bankruptcy are poor money managers or overspend on unnecessary items. But you may find yourself in a difficult financial situation after a job loss, a divorce, a medical issue or another difficult life event.
Although bankruptcy can help you start over financially, it is a legal process that still comes with consequences. Carefully consider your situation and the impact bankruptcy will have before moving forward with this legal process.