Most people understand the seriousness of filing for bankruptcy, which is why they take their time when making a final decision. While it’s okay to consider all your options, you don’t want to delay too long.

Here are a few situations that often lead to a bankruptcy filing:

  • Your debt continues to grow: No matter how hard you try, you keep digging yourself a deeper hole. If your debt continues to grow no matter what you do, it’s time to consider the impact bankruptcy can have on your life.
  • You’re using your retirement funds to get by: If you’re desperate enough, there may come a point when you turn to your retirement accounts for money. It’s your right to do so, but it will definitely impact your ability to retire in the future.
  • You’re in jeopardy of losing your home: No one wants to lose their home to repossession but if you’re not current on your mortgage, this could happen sooner than you think. Through a bankruptcy filing, you can stop your lender from proceeding with foreclosure, thus allowing you to save your home.

Only you know if bankruptcy is the answer to your financial problems. As you compare the pros and cons of Chapter 7 and Chapter 13, you may come to realize that it’s the best way to get your life back on track.

If you decide in favor of bankruptcy, learn more about the steps you need to take to get started. Once you have a plan in place, you can focus on your legal rights as a consumer and how to use bankruptcy to your advantage.