No one wants to declare bankruptcy, and it’s always best to try all other alternatives first. But when nothing seems to work, and your debt is increasingly getting out of control, then filing bankruptcy may just be your best option. Here are four instances when you shouldn’t wait too long to talk to an attorney in New York to kick-start the process.
You must use your credit card for daily needs
When you must put grocery and gas expenses on your credit card, then know that there’s trouble. The leading reason people do that is that they’re spending all their paycheck on paying a debt. So they have to charge their daily expenses to their cards, which pushes them further into debt because of the interest they must pay.
You’ve already taken a second or third job
Many people take more jobs to help clear their debt. If that extra income is helping you meet your expenses, then that’s a good thing. But when your debt is so high that no number of extra hours per week seems to dent it, you may want to think about declaring bankruptcy.
Your lender wants to garnish your wages
In some instances, a lender may move to court to have an order to take money directly out of your paycheck. When that happens, you could find yourself running into more financial problems. As soon as you get a notice that your wages are about to be garnished, it may be time to file for bankruptcy to prevent it from happening.
Your debt is affecting your personal life
When you start becoming so distressed that you can’t focus at work or in running your business due to debt, then you may want to consider taking extreme measures. In any case, getting dismissed from work or closing shop won’t help your debt at all.
Filing a bankruptcy petition is an enormous financial decision, one that you want to think through carefully before taking. When it becomes clear that you have no other way to get out of debt, the moving quickly to take this step could help you get back on track.