If you've never filed for bankruptcy before, you might be uncertain of how you know if it's time for you to seek bankruptcy protection.
Bankruptcy can be confusing and a little scary. However, it could also be the best solution to your financial difficulties.
The following are five things you can do to determine if you should file for bankruptcy:
Compare your income to your expenses
Probably the first thing you should do to analyze your situation is total up your monthly income versus your monthly expenses.
If your monthly expenses exceed your monthly income and nothing is that situation is unlikely to change in the near future, it is probably time to declare bankruptcy because things are only going to get worse.
Take a critical look at the mail you're receiving
Anyone considering a bankruptcy filing is probably getting letters from creditors demanding payment. When it's time to file for bankruptcy, these letters will likely take a different tone that's more demanding and aggressive.
If letters from creditors are starting to mention legal action, it's probably time to seriously consider bankruptcy.
Put some thought into the phone calls that you're getting
Those who are having financial trouble are typically hounded by phone calls from creditors. This can become so severe that it leads to a huge amount of emotional turmoil.
If you can't stand receiving the calls from creditors demanding payment and it's beginning to negatively impact your emotional health, consider discussing your situation with a bankruptcy attorney.
Consider your sleep habits
When financial troubles become serious, they can make it difficult for individuals to feel relaxed enough to fall asleep and stay asleep at night.
Those who have trouble sleeping may fall into a vicious cycle where they can't manage to fulfill job requirements due to fatigue and therefore compromise their income. This leads to worsening financial distress.
If you're having trouble sleeping because you can't stop thinking about your financial troubles, consider filing for bankruptcy.
Think about what you've done or thought of doing to resolve the situation
If you're reaching a high level of desperation, it's time to file for bankruptcy. Desperate measures include attempting hopeless "get rich quick" schemes or taking out loans with extremely high interest rates like payday or auto title loans.
These types of desperate measures are more likely to make things worse than they are to get you out of your financial troubles. It's probably better to file for bankruptcy than to attempt to resolve your problems with these risky solutions. For more information, visit websites like http://www.derkdemareelaw.com.