Unfortunately, even the best financial planner and budgeter can experience financial issues. While there are numerous reasons why people file for bankruptcy, a lot of the time they do it because of an unexpected illness or job layoff has caused them to fall behind on their bills.
If you are falling behind on paying off your debt, you may be wondering if you should or shouldn’t file for bankruptcy. After all, we know that the decision to file is not a simple one, as some people view doing so as an embarrassing personal low. But, there are some instances and signs that it’s probably time (one not being because you are $53 million in personal debt since you felt compelled to bring more “beautiful ideas to the world.”)
1. Your Loved Ones Will Suffer, or Are Suffering.
If you live and care for young children, a disabled and/or elderly family member, it can be difficult to support yourself and them, especially if you are under pressure by debt collectors to pay your bills and theirs. If you see a financial collapse on the horizon and fear that your loved ones will suffer, it is time to speak with a bankruptcy attorney.
2. You Are Thinking of Dipping into Your Retirement Funds.
Many people find it tempting to dip into their retirement fund(s) to help pay off their debts. However, if you do, not only will you have less money when you retire to live comfortably, you could be faced with early withdrawal fees and pay extra income taxes later on when you are retired. Inevitably, before you take money from your 401k or another retirement fun, it is wise to speak with someone to let you know if it is better to do than filing for bankruptcy.
3. Your Balances Stay Consistent, and Your Debt Keeps Growing.
It’s one thing to have debt you are paying off, but it’s another to have debt that doesn’t seem to get any smaller even as you are making payments. If you cannot address all of your debt, and keep getting slammed with additional bills that you are paying off but cannot seem to eradicate, it’s time address your current situation with a bankruptcy lawyer.
As bankruptcy lawyers in Montgomery County, we can help you properly determine if filing is the right choice for you and your loved ones. To learn more about how we can help, please browse through our website or give us a call immediately.