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3 signs it’s time to file bankruptcy

When you first opened your credit card account, you probably did not think that you would eventually be struggling to make payments. When you have to choose between putting food on the table and making a mortgage payment or a credit card payment, the choice seems obvious. Unfortunately, a combination of overwhelming debt and loss of income can lead to these kinds of circumstances. If you have found yourself in this position, you are not alone. Several of your Gulfport neighbors have more than likely found themselves in a similar situation.

When debt spirals out of control because of a sudden financial loss, such as divorce, job loss or an unexpected medical emergency, there are relief options available. For some people this might mean only completing a credit counseling course, for others, bankruptcy might be the best solution. Read further to find out if bankruptcy is right for you.

It's going to take more than time

In some situations, it is possible to get back on track after only a few months. In others, no amount of time will ever be enough. For example, if your income is not high enough to cover your daily living expenses as well as your debt, and you do not anticipate any increases in your income, then it is unlikely you will ever catch up. Bankruptcy can help restructure your debt so that it is manageable.

You are thinking of cashing out your retirement

If you have a 401(k) retirement account and you have been looking at it as your only option for survival, it is time to take a step back. Usually, these types of accounts receive protection during bankruptcy filings. If you opt for bankruptcy, you may be able to take care of your debt and save your retirement account.

You're buying basic necessities with a credit card

If you are close to maxing out your credit cards because you have been using them to buy necessities, such as food and clothing, then it is time to take a serious look at your options to get your debt under control. Once you max out those cards, you will use your last financial resource. Before this happens, it is vital to regroup and start working toward a real debt solution.

For many people, bankruptcy seems like failure. In reality, it is a tool that you might be eligible to use in order to restructure your debt to a manageable level. If any of the above situations apply to you, then bankruptcy might be your best option.

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