Signs That You Need to File Bankruptcy Now
Delaying a necessary bankruptcy is a common mistake amongst debtors. But many debtors put off filing bankruptcy because they genuinely do not know when it's a good time to file. Many pundits insist that debtors do all they can to avoid bankruptcy even when the warning signs are evident that a bankruptcy is not just an option but mandatory for that debtor's situation.
Below are a few financial warning signs that you may need to file bankruptcy immediately:
- You are 60 days or more behind on your credit card payment , mortgage, or other important bills. Being seriously delinquent on your debt payments will prompt aggressive collections actions by creditors which could end in a lawsuit and garnishments. Filing bankruptcy would stop creditor collections actions from escalating.
- You use your credit cards to pay for essential things such as food and you use one credit card to pay another. Robbing Peter to pay Paul is a definite sign that you may need to consider filing bankruptcy.
- If you're not delinquent on your credit cards you are barely staying afloat as you pay only the minimum required. If you are not able to pay more than the minimum on your credit card then you probably should consider filing bankruptcy.
- You've done the numbers and you have realized that it would take more than five years to pay off unsecured creditors. If it will take more than five years to pay your unsecured debts, then you probably should file bankruptcy. Even Chapter 13 bankruptcy plans discharge unsecured debt which can't be paid off in the five year maximum time limit that a debtor is allowed to remain in a bankruptcy repayment plan.