Bankruptcy: How To Know When To Throw In The Towel

Bankruptcy: How To Know When To Throw In The Towel

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For those who have accumulated a high amount of debt over the years, it can be difficult to establish a plan on repaying the money that is owed. For many people, it can be a challenge to see an end in sight or have an idea on when the debt can be repaid. When evaluating a personal financial situation and determining the next step to take, there are several signs to look for that it may be time to file for bankruptcy.

You Rely on Credit Cards for Essentials

If it’s difficult to make ends meet and an individual is relying on credit cards to pay for fuel or groceries, then it’s a sign that bankruptcy is a viable option. If it’s difficult to pay for basic household expenses then it will be impossible to pay thousands of dollars that is owed in debt.

The Minimum Payments are Difficult to Afford

The only way to repay debt in a realistic timeframe is by paying more than the minimum payment on credit cards each month. If it’s difficult to afford the minimum payment, then it won’t be easy to repay the debt in the coming years due to interest rates that will also need to be paid for each month.

You Don’t Know How Much You Owe

The best candidates for bankruptcy are those that have accumulated so much debt that they find it difficult to calculate what they actually owe. From student loans to credit card debt, there many be a long list of accounts that have high balances for an individual. According to Harris & Partners Inc, a bankruptcy trustee in Toronto, a legal expert can evaluate the client’s financial situations and assist with the bankruptcy process.

It’s Difficult to Sleep at Night

Those that experience stress and fear on a daily basis due to their financial situation should consider bankruptcy to find relief with the debt. Collections agencies or lenders may be calling each day, making it difficult to have peace of mind and sleep well at night. It may also be easy to fear with having assets or personal possessions repossessed.

For those in difficult financial situations who are heavily in debt, there are several different warning signs that may indicate that it’s time to consider bankruptcy. Although filing for bankruptcy can be a difficult process, the relief that is offered will provide financial freedom and make it possible to regain independence.

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