The Bankruptcy Battle - 4 Signs You Need To Declare Bankruptcy

Bankruptcy (Photo credit: LendingMemo)

Bad things can happen to good people. Personal financial difficulties often go hand-in-hand with challenging situations including illness, divorce or the loss of employment. Unfortunately, your creditors will often be unwilling to make payment arrangements that are affordable for you. Remember that no matter how large your debt, you still need to maintain your current living expenses. One of the most common reasons that people file bankruptcy is a loss of income. Not everyone who loses a job will file for bankruptcy. Here are 4 signs that you need to declare bankruptcy.

You Can Not Afford to Pay Your Bills

If you have found yourself in a situation where you are unable to fulfill your financial obligations, it might be a good time to consider declaring bankruptcy. According to Paddon & Yorke Inc, dealing with debt is very stressful. If you are being harassed by creditors who are unwilling to help you negotiate lower or deferred payments, filing bankruptcy papers will bring that harassment to an immediate end. While filing for personal bankruptcy may seem scary, there’s a lot of personal bankruptcy firms in Toronto who can help you. 

You Have Become Ill or Disabled

If you have medical expenses piling up and you are unable to pay them, it might be a good time to declare bankruptcy. This is a very common reason for filing, as explained above. Bankruptcy will help you to get a repayment plan that you can afford, or it may discharge your medical debt completely. And being ill or disabled automatically qualifies you for some government benefits, which may also aid in you reorganizing your finances in such a way that you can afford to work through the payments and get your money back on track. 

Are You Trying to Save Your Home?

If you are at risk of losing your home because you are trying to balance too much debt, this is a sign that you should consider bankruptcy. You can make new payment terms with your mortgage company as a part of the process, while your other debts are discharged. This will give you the financial ability to pay your mortgage and to stay in your home. Losing your house is usually a last-resort thing and means that you’re in some serious trouble, but it also gives you a lot of motivation to help fix your finances. In these situations, a little bit of healthy fear will go a long ways to helping you fix the way you spend and manage your money. 

Do You Live Paycheck to Paycheck?

While many people live paycheck to paycheck, some find it easier than others. If you have found yourself in a situation where you can no longer afford to pay your debts and need a fresh start, this is another sign that you might want to declare bankruptcy. While bankruptcy is not the best answer for everyone, it can help to alleviate financial strain on families struggling to meet day to day needs. Especially if you have a family, living paycheck to paycheck is not an ideal situation. Kids get sick, and other expenses come up that you can’t predict. Getting yourself to a stable financial situation is imperative.

If you have found yourself in any or all of the above situations, you should seriously consider declaring bankruptcy now. It will help you get your life back on track and give your a fresh financial start. Whether you have recently lost your job, faced an illness or injury or are recently divorced, there is no reason that a few bad years should ruin your life forever.