Many Tennessee residents have money issues and end up falling into debt. This can lead to a slew of problems that can overtake your daily life. These are common signs that it’s time to file for bankruptcy to alleviate your financial burdens.
You’re struggling to pay bills
One of the biggest signs that you might benefit from filing for Chapter 7 or Chapter 13 bankruptcy is that you regularly struggle to pay your monthly bills. If doing so is a hardship for you, it means that you need help. Bankruptcy can offer some relief whether you need certain debts discharged or simply need more time to repay.
You have overwhelming medical debt
Although many people fall into debt traps due to irresponsible credit card use, this isn’t the case for everyone. If you had or still have a health crisis that required significant medical treatment, hospitalization or other care, you might have overwhelming medical debt. Trouble paying medical bills is a good reason to file for bankruptcy.
You’re at risk of foreclosure
Bankruptcy can help if you’re at risk of foreclosure and losing your home. Filing can help you keep your home while you make monthly payments toward your mortgage. Filing Chapter 13 is your best option as you have a repayment period of three or five years. In some cases, your debt might be completely wiped out.
You’re being harassed to pay
Another indication you should file bankruptcy is that creditors or debt collectors regularly contact you urging you to pay. Whether it’s via phone or writing, this harassment quickly becomes tiresome. A bankruptcy filing puts an end to this; if creditors or collectors continue contacting you, they’re breaking the law.
Bankruptcy should be a last resort. If you’re struggling with significant debt, it can give you some peace.