These days, many Michigan residents live paycheck to paycheck. A lot of people may find themselves in high amounts of debt just trying to make ends meet. Excess debt can be draining and overwhelming. However, when it feels like there’s no way out, filing for Chapter 7 bankruptcy may be an option to consider. Here are some things that may indicate it is time to file for bankruptcy.
Only making minimum payments
Credit cards can be useful tools, but it doesn’t take much to rack up high amounts of credit card debt. Many times, credit cards have high interest rates. If the account holder is only making minimum payments, the payment amount could be going all to the interest instead of paying down the balance. It’s easy to see how credit card debt can spiral out of control.
Calls from bill collectors
Phone calls from debt collectors can be stressful and nerve-racking reminders of debt. Contacting creditors to see if they can lower payments or negotiate balances can prove beneficial. However, receiving constant calls from bill collectors can be a sign it is time to consider bankruptcy.
First steps to filing for bankruptcy
Obviously, no person truly desires bankruptcy. In some cases, however, bankruptcy may be the only option, especially for those who are facing loads of debt with no way of paying it off. The laws surrounding bankruptcy, as well as the filing process, can be complicated and confusing. Those in Michigan who have questions or want to know more about filing for bankruptcy can get help by speaking with a legal professional. An experienced attorney can answer questions and provide legal guidance.