Most people use bankruptcy as their last resort. If you can manage to pay debts anyway, why file such a case?
In many cases, however, they avoid filing for bankruptcy even if they can’t pay their debts anymore because of unfounded fears, which most likely are over-exaggerated myths or completely false at all.
However, for your own benefit, filing for bankruptcy could be your best option. But under what circumstances? When should you file for bankruptcy? Here are the 4 signs to consider:
- No cash flow – If you don’t have any cash flow – whether coming from a regular job or business/investment income – it’s a clear sign you need to consider filing for bankruptcy! In this situation, you virtually can’t pay your debts since no income is coming in, so filing for bankruptcy might be the better option for you.
- Unable to pay upcoming bills – If you can’t even pay your bills anymore – which are the basic expenses everybody has – maybe it’s time to consider for bankruptcy. Not only you’re incapable of paying anymore, but not paying your bills could even take a toll on your lifestyle. Filing for bankruptcy would smoothen things out, so you might want to consider that if you ever find yourself missing the last month’s bills.
- Checks start to bounce – If your checks often bounce, it’s a clear sign your bank account is nearing empty or totally empty. You may want to first assess why your account do not have any funds, but having a NSF (Not Sufficient Fund) account could be a symptom of a larger problem – therefore, you may still need to consider filing for bankruptcy.
- High credit card balance – Do you have more credit card balance than you pay? This might first sound like delayed credit card payments, which does happen. But if you have more credit card balance than you can pay, it’s time to reassess your budget altogether and be open to the possibility of filing for bankruptcy.
If you ever face one of these signs or situations, it’s time to reassess your finances and see if bankruptcy is a better option to solve those problems.
If you need any help, you can always go to your best bankruptcy lawyer for more legal information and assistance!