Knowing When it is Time to File for Bankruptcy

Are creditors constantly calling you at home and at work? Does the thought of simply opening your mail get you stressed out? Are you worried that your gas or electric access may be turned off or your vehicle might get repossessed? Do you lay awake during the night worrying about your home getting foreclosed on? Have you liquidated your personal savings or, worse yet, your retirement accounts just to pay monthly bills and buy essentials like food? These are all signs that it may be time to seriously consider filing bankruptcy.

Today, as much as at any time in the last eighty years, people are facing financial hardship because of events beyond their control. The recession, job losses, and business owners realizing massive declines in sales are amongst the causes of the hardship. Very few people, if anyone, still hold the antiquated view that the need to file bankruptcy is somehow a reflection of the moral character of the person filing. Historically, bankruptcy has been the last relief valve for those in direst straits. It doesn't matter if you are a religious zealot or a card-carrying atheist, it is hard to argue with astronaut Frank Borman who said, "Capitalism without bankruptcy is like Christianity without hell." Americans seem pretty united in their belief that bankruptcy is a valid, necessary tool in our economy. The choice of whether to seek bankruptcy relief is difficult and can be heartbreaking. A lot of individuals experience shame and anxiety over filing bankruptcy. These folks are often afraid that filing bankruptcy makes them look reckless, or like people who just don't want to pay their bills. But the truth is that there is no shame in filing bankruptcy. Some people need bankruptcy, and bankruptcy law exists to make sure that people having financial trouble can survive.

As one popular author puts it, "Bankruptcy represents a longstanding commitment in this country to helping people get a fresh start. When do you know it is time to file bankruptcy?" To answer, that somewhat rhetorical question, consider that reports have shown that over ninety-five percent of the individuals who consult with a bankruptcy atto
ey qualify for Chapter 7 bankruptcy.

Determining whether or not you qualify for bankruptcy is not something you can figure out simply by doing a Google search online. There are some difficult calculations that need to be made, and it is a process is probably best left to a professional. That being said, there are some common symptoms of financial strain that are good indicators that it is time to see a bankruptcy lawyer. For example, draining retirement accounts to stay current on bills, or dipping into a 401k are signs. Repeated phone calls from collection departments or suffering from health ailments related to stress caused by worrying over your finances are additional signs.

A good rule of thumb is, if you are uneasy, melancholy, depressed or downright hopeless and panicked about your finances, it is then probably time to trust your gut and get bankruptcy advice from a certified professional.