Whether you are a single parent with children in college or a retiree with rising medical bills, keeping debts paid may be challenging. Have you thought about bankruptcy? Do you know if or when you should file?
Here are a few reasons to help you decide if now is the right time to file for bankruptcy.
1. Are bill collectors calling?
If you owe money on your car, house and credit cards and are behind on payments, you may have gotten calls from debt collectors. Do the calls seem out of control? Be aware of your rights. The Fair Debt Collection Practices Act makes it illegal for them to be abusive or use unfair or deceptive ways to collect debts.
2. Do you only make minimum payments on your credit cards?
Making minimum payments on credit cards keeps your account in good standing. That is about all it does. It does not help much to reduce your debt. There is a minimum payment warning on your bill that shows how much money and how long it will take to pay off your balance if you pay only the least amount each month.
3. Are you not sure how much debt you are in?
If you do not know how much you owe, start by pulling out the credit card bills and mortgage and car payment information. Look up your bank statements. Are you spending money you do not have to? Is there a recurring payment you were not aware of?
If you answered yes to one or more of these questions, take the time to sit down and figure out your money situation.