Deciding whether or not it is time to start considering the option of filing for bankruptcy can be very hard for a lot of people. It might feel as though you failed or that you are giving up, but that is not the case. Choosing bankruptcy, in the right circumstances, is actually doing the opposite. It is taking control of an out of control financial problem and getting it taken care of. So, how do you know if you are ready to move forward with the process and consult with a bankruptcy lawyer? Check out the following points.
You Are Not Able To Squeeze Out Any Extra Funds
One way to have extra money to pay down your debt is to stop paying for things that are not necessities. If you have done that already and you are still struggling, you could try to increase your income level by taking on extra hours at work or by getting a second job. If that is not a possibility or if you find that even after doing that you are still not making it, you might be in need of bankruptcy. After all, if you have exhausted all of your resources and you still cannot pay the minimum you need to pay each month to get by, getting a fresh start with bankruptcy might be your best bet.
You Cannot Make Suitable Payment Arrangements
Even if you are able to afford to pay everything you owe a monthly minimum payment, if you are already very far behind on your bills, that might not be good enough for your creditors. They might want double payments, or some other payment arrangement that you cannot afford. If this is the case, and you find that you are stuck in a cycle of never being able to catch up because of this, you might want to consult with a bankruptcy lawyer. Sure, a bankruptcy can impact your credit score, but it might not be as bad as continuously having negative marks on your credit history every month for many years as you continue to financially struggle. Getting the bankruptcy approved and starting fresh can be a good way to rebuild your credit.
If you feel that bankruptcy may indeed be the best option for you, you will need to set up a consultation with a lawyer as soon as possible. Make sure that it is a lawyer that specializes in bankruptcy and that will be able to take your case right away. After all, bankruptcy can be a lengthy process depending on the chapter that you file, so it is best to get the ball rolling now.