Filing for Chapter 11 bankruptcy might seem like a cut-and-dried decision. After all, if you're swimming under a pile of debt and can't seem to make your payments work, then it might seem like your next logical step is to file for Chapter 11 bankruptcy and wipe the proverbial financial slate clean.
But for some high-income earners, filing for Chapter 11 bankruptcy - or any type of bankruptcy, for that matter - is akin to giving up on their finances. Some individuals would rather struggle with their debt for life rather than contacting a bankruptcy attorney to work through their options.
First, it's important to note that filing for a Chapter 11 bankruptcy isn't a sign of giving up - it's a sign that you're actually taking control of your finances again. Perhaps you feel that declaring bankruptcy will leave a black mark on your credit forever and you'd rather preserve what little you have left. But it's important to note that your credit has already hit rock-bottom, thanks to the sheer amount of debt you've accumulated. Declaring Chapter 11 bankruptcy won't do much to damage your credit at this point, but it will give you the opportunity you need to start over again.
So what warning signs show that it's time to file for a Chapter 11 bankruptcy?
Take a look at these red flags - and if you recognize your own financial scenario in any of them, then it's time to contact your bankruptcy lawyer and petition for a Chapter 11 bankruptcy:
- You've already tried to reduce your debt load by working with debt management companies and debt consolidation loan strategies. If these alternative debt solutions haven't done much in terms of decreasing your debt load, then it might be time to declare Chapter 11 bankruptcy and start all over again.
- Are your creditors ramping up their efforts to collect on the debts you owe? If that's the case, they may see that your financial position is leading towards bankruptcy - and sometimes it pays to put yourself in your creditors' shoes. If they think you're heading for Chapter 11 bankruptcy, then you probably are - whether you realize it or not.
- Finally, if you're constantly worried about your financial situation and are actually suffering physical health problems because of it, it might be time to declare bankruptcy. It might seem like a huge step to take, but you'll be amazed at the burden that will be lifted off your shoulders.
Don't spend another moment suffering with a huge pile of debt - contact a bankruptcy lawyer today to petition for a Chapter 11 bankruptcy.