5 Signs You Need to Declare Bankruptcy


Financial matters can become quite overwhelming and you can easily find yourself deep in the hole of debt. Maybe you’ve been laid off, fallen ill, or any other financial disaster that renders you unable to fulfill some financial tasks comfortably. The decision to declare bankruptcy can be a difficult one and there are quite a number of considerations to make. Here’s a list of the common signs filing bankruptcy could be the best decision. Please read on.

1. You’re at Risk of Losing Your House

Mortgage payments can become very challenging and quite a number of homeowners may find it hard keeping up with the payments. Foreclosures could be a possibility should you find yourself in such a financial situation. This is where filing bankruptcy could come in handy to help you keep your home as you come up with a plan on how you’ll repay the debts after a reasonable amount of time depending on your earnings. You can stave off the foreclosure proceeding if you’ve paid the outstanding mortgage balance and keep paying on a regular basis.

2. You’re Using Up Your Savings

Savings are very essential when it comes to being ready for your future. However, you may reach a situation where you’ve depleted your personal finance and have started using your savings on household expenses, bills or paying a debt. This could be dangerous both to your future and could create a hefty tax bill. Filing bankruptcy could be the best decision to make to prevent you from using up all your savings and suffering more with time.

3. You’re Unable to Pay Your Bills

Not being able to pay for your bills can be very disappointing and stressful. Maybe you got laid off or fall ill and was hit off guard by a financial disaster. This may force you to use your credit card to obtain your daily necessities – which only adds to your debt. What should you do now? Well, unless you want to rack up debt because of something you could’ve controlled, you can file for bankruptcy and you’ll have bought some more time.

4. You’re Being Sued by Debt Collectors

You’re likely to be handed over to a collection agency if you fail to pay your debts after a certain period of time. The debt collectors will be calling you and sending letters asking you to pay. If you’ll not respond, they might file a debt collection lawsuit to make you pay up. Trying to fight this lawsuit may not be that easy. In fact, you may end up spending way more in court costs and the fees for bankruptcy lawyers in case you’ll lose. However, filing bankruptcy will allow you some legal protection against the debt collectors. You won’t be liable for any extra collection actions until the case is dismissed or discharged. You’ll need to hire a helping hand from bankruptcy lawyers. For instance, you can consult an attorney from the John A. Steinberger & Associates for more information.

5. Your Wages Are Being Garnished

If your creditors take a fraction of your paycheck to cover a debt directly from your employer, wage garnishment is bound to occur. It’s your responsibility to take probable action to protect your financial investments when it comes to wage garnishment. But if it’ll be too late and your wages are being garnished, you should consider filing for bankruptcy as per the law. However, you need to be keen not to file for the same to prevent garnishment for domestic support obligations.


Life could get difficult sometimes, more so when you’re faced with a financial disaster. Paying for your mortgage, bills, and daily expenses become challenging. The decision of filing bankruptcy may be a nightmare, especially when you’re not sure when it can be your best solution. Fortunately, these signs should guide you know when it’s right to file for bankruptcy come for your rescue. You should consult a bankruptcy attorney to advise you on the legal steps to take. You can also look out for other relevant blogs to learn more about filing bankruptcy.


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