Although Bankruptcy is often the last resort in debt management, bankruptcy can provide you with financial relief and lead you to a fresh start. Filing for bankruptcy may seem like giving up, but it’s a highly effective financial solution, given the right circumstances.
If you’re struggling financially, bankruptcy might be an option for you. Here are six signs that it’s time to file for Bankruptcy:
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You Can’t Pay Off Debt
It’s normal to feel overwhelmed and worried that things might get worse. Filing for bankruptcy may be the right option for you if you are struggling to pay off your debt. There are several reasons why people file for bankruptcy, including:
- tax debt
- student loans
- credit card debt
- other debt
Filing for bankruptcy can stop garnishments of your pay cheque, halt harassing phone calls from creditors and make it easier to deal with unsecured debts such as personal loans and credit cards.
Learn more about What it means to file Bankruptcy and what to expect when you do
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You’re Not Able to Manage Your Finances
Falling behind on bills can be an early indication that your financial debt has become unmanageable. You may have viable options available to you, such as requesting a lower interest rate or repayment term. If these methods don’t work, then filing for bankruptcy may be the right decision.
See more about: What is Bankruptcy and How long it last
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You Have Too Much Debt
Unexpected job loss, car repair bills or other emergency bills can quickly snowball into financial hardship. Too much debt can become very stressful and challenging to manage. An unexpected bill could make it difficult for you to pay your debt on time, or at all. If you have more debt than you can reasonably handle, now is the time to consider filing for bankruptcy.
Filing bankruptcy gives you a clean financial slate to begin rebuilding your finances from a position of strength and confidence.
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You Don’t Know Where to Turn
If you’re struggling to make minimum payments on your debt, you may feel like you don’t know where to turn. You can try to negotiate payment terms with your creditors; however, this may cause them to raise your interest rates if they think you’re getting close to filing for bankruptcy.
You can also read about Stressed about finances
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You’re using your credit cards more and more
If you are living month-to-month with very little in savings or investments while finding yourself using credit cards to make ends meet, filing for bankruptcy may be a good option.
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You want to start over and be Debt free
It’s essential to start your debt-free journey and become a conscious consumer by making sure you understand where your money is going. You can start by taking steps to cut back on spending, establishing a budget and making sure you are consistent with your newly adopted spending habits.
You may be familiar with our last blog: 4 Things That You Need To Know About Tax Debt – How to get it under control which talks about tax debt relief options you need to consider.
Conclusion
If you are experiencing any of the above issues, Andrea Orr, a Licensed Insolvency Trustee (LIT) in Windsor, Canada, can help you. Andrea Orr is, an expert in her field, who shares her insight into the choices you need to make as you approach your case.
Book a discovery call today with a Licensed Insolvency Trustee (LIT) here in Windsor. We sit down with each of our clients to find all available options to get out from beneath your debt using the Bankruptcy and Insolvency!
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