You have debts -- but so does everybody else you know, right? Maybe some have gone to collection, but is that really a big deal?
If these thoughts sound familiar to you, you've probably convinced yourself that it's normal to have debt collectors constantly hounding you to pay. But, how do you know when you can still dig yourself out of debt with a little more time and effort and when it's time to file bankruptcy?
It's probably time to file bankruptcy if:
1. You are facing legal judgments and wage garnishments
Maybe some of your creditors simply gave up -- but others may have done everything in their power to collect what you owe. If your bank account has been attached, your paycheck is being garnished or your home has a lien against it for unpaid debts, you are probably in deeper than it's possible to dig back out.
2. You have changed your phone number and just throw out the bills
If you've gotten to the point where you simply think avoidance is better than anything else, you aren't coping with your debt -- and that means it isn't going to improve. It's time to talk to someone about a better solution than hiding from creditors all the time.
3. You've had a catastrophic event in your life
What does that mean? It could mean you lost your entire career and can't bounce back into anything that pays remotely the same. It could mean a divorce. It could mean a serious illness in your immediate family that leaves you with massive medical bills. Sometimes, debts pile up through no real doing of our own -- and bankruptcy is the best solution.
If you think it might be time to file bankruptcy, get some advice about your options and your rights. Take the first step toward tackling your debt directly.