Before you jump head first into filing bankruptcy, you might want to make sure that it is something that you are truly ready for. To help you figure this out, you might want to take a few moments to review the following signs.
You Can't Improve Your Debt-To-Income Ratio
Your debt-to-income ratio is how much debt you have compared to how much income you have. You need to have enough money every month that you can pay for all of your expenses and have a little left over for emergencies. If you have more debt than income, you will never be able to get caught up with your bills. Therefore, you can consider a debt consolidation to see if that would bring your monthly debt down low enough so that your income will cover it. If that will not work, you may want to consider a second job. If that still will not do the trick, you might want to go ahead and talk with an attorney about filing for bankruptcy.
The Collection Calls Are Becoming Too Much To Handle
Creditors reserve the right to call the people that owe them money and who are past due with the arrangements that they had agreed to. The thing is though, each one of your creditors that you are past due with can call every single telephone number that they have in the system for you. This means that they can call all cellular numbers, you house number, your employer, and any friends or family members that you have on record in their system. At the end of the day, this can result in an overwhelming amount of collection calls. If you have found that this is what you are experiencing and cannot make any arrangements to make those calls stop, you might want to file for bankruptcy.
You Have Been Threatened With Lawsuits
Some creditors may decide that taking you to court and obtaining a judgement against you is their best option. This not only damages your credit further, but it can put personal property at risk, as some judgements can result in an auction of your personal property, such as boats, vehicles, or possibly your home in order to pay off the judgement that has been placed against you. Therefore, if you suspect that one or more of your creditors might be close to taking you to court, you may want to schedule a free consultation with a bankruptcy attorney to determine the best course of action for your situation.
With those things in mind, it should be a little easier to decide whether it might be time to consider filing for personal bankruptcy. Contact a local lawyer, such as one from Shoemaker & Dart P.S. Inc, for further assistance.