Filing for bankruptcy under Chapter 7 protection will eliminate most types of unsecured debt. It is ideal for consumers with out-of-control debt and an income that far outweighs their ability to realistically repay all they owe. But how can you be sure Chapter 7 bankruptcy is right for you? Below are four signs to look out for.

4 Signs You Should File for Chapter 7 Bankruptcy

1. Creditors Won't Leave You Alone

If you spend your day avoiding creditors' harassing phone calls or receiving their threatening letters, you may be a good candidate for Chapter 7. Creditors only utilize these tactics when bills are significantly past their due date, and various fees and interest charges are piling up. When you file for Chapter 7 bankruptcy, all creditor action is required by law to stop immediately.

2. You're Debt Is a Source of Stress

Most of us with debt have reasonable worries about our ability to repay what we owe. But if your worries are more in the territory of anxiety, it's a sure sign that financial stress is taking its toll. Filing for bankruptcy allows you to take a deep breath, release the burden of debt, and start on a fresh, new financial path.

3. You're Struggling to Make Minimum Payments

Credit cards are convenient, and they are particularly handy in emergency situations. However, it's also incredibly easy to rely on them for everyday purchases, causing you to rack up high balances and interest charges. Minimum required payments often only go toward the interest, which means you're barely making a dent in the total amount you owe. If you're struggling to make even the minimum monthly payment on your credit card, explore the possibility of Chapter 7 bankruptcy.

4. Your Home Is Facing Foreclosure or You're Being Evicted

A Chapter 7 filing issues an automatic stay on any foreclosure action against you. This stay is not permanent, but it can buy you some valuable time as you make decisions about whether it's in your best interest to try to retain your property or liquidate it. For renters, eviction action is also halted by a Chapter 7 filing, and you can include your back rent in your bankruptcy discharge; if you can keep up on your current rent obligations, you'll likely be able to stay in your home.

Harry B. Zornow is a bankruptcy attorney with more than 27 years of experience serving the Hamilton, OH, region. Call (513) 737-9770, visit his firm's website, or contact them on their Facebook page to schedule a consultation. By recognizing some telltale warning signs, you'll know when it's time to consider Chapter 7 bankruptcy as the next step in reclaiming your financial future.