Most people in West Hills dislike the idea of declaring bankruptcy, even when their debt problems are causing them to lose sleep and endangering their physical and emotional well-being. Debtors frequently believe that they aren’t trying hard enough, or that if they could just get a better job or pay off a specific debt, they would be in better shape. Meanwhile, past-due balances, interest rates, and penalty fees continue to accumulate, exacerbating the problem.
It’s often difficult for people to recognize when it’s time to declare bankruptcy. They may mistake bankruptcy for giving up (which is untrue) or believe it is not serious enough to consider. Or they may be afraid of losing valuable assets such as their home or car. However, if bankruptcy is necessary, it is critical to act quickly before the situation worsens. The following is a list of indicators that, if present, strongly suggest that bankruptcy should be considered.
Indicators that it may be time to declare bankruptcy
Financial insolvency is a condition. The more symptoms a debtor experiences, the more likely it is that bankruptcy is in order. Most people and families who can benefit from bankruptcy experience a combination of the following:
Anyone experiencing any of the above situations, particularly those experiencing multiple situations, should seriously consider filing for bankruptcy. The debtor should then consult with a bankruptcy attorney to confirm that bankruptcy is the best option. If so, the attorney will file the case in court and notify creditors, effectively halting all collection efforts until the bankruptcy process is completed or the bankruptcy court lifts the stay.