When debts you can’t pay off are preventing you from moving forward, Chapter 7 or Chapter 13 bankruptcy might be on your mind. With the proper steps, these alternatives will discharge or restructure debts so you can establish more financial flexibility — and eliminate collection attempts. However, since filing is an involved process that can have a lasting impact on your credit score, it’s important to only consider bankruptcy when it fits your situation. If you’re on the fence about declaring, here are five common signs you should talk to a bankruptcy attorney.

Is Bankruptcy a Good Option for You?

1. Increasing Balances 

Credit card and loan balances are meant to shrink over time through monthly payments — not increase. However, high interest rates and financial setbacks can often make it difficult to catch up on your accounts. And the more your balances increase, the more your credit score will be affected. Chapter 13 bankruptcy will restructure these balances so your debt will stop growing, while Chapter 7 will discharge them entirely. 

2. Major Life Changes

When you work with a bankruptcy attorney to file, you’ll need to consider all the factors that may influence the court’s decision, such as income and life changes. For example, losing a family member, experiencing a natural disaster, having major health problems, or getting laid off can make you a more favorable candidate for bankruptcy.

3. Depleted Savings 

Often, consumers will rely on savings to pay off debts that have grown out of control. In many cases, these savings aren’t enough to correct the situation. Rather than taking away from the money you’ll need in the future, bankruptcy may be a more suitable option.   

4. Non-Stop Collection Calls

Having debt collectors call you and mail you incessantly only makes the repayment process more stressful. One of the only ways to get these collection attempts to stop is to file for Chapter 7 or Chapter 13 bankruptcy, as this will legally require collectors to ease their efforts, since your debts will be discharged.

The best way to know if you’re a good candidate for bankruptcy is to talk to a qualified attorney — such as those at the Law Offices of Harry G. Lasser in Cookeville, TN. Specializing in financial management, this law firm can review your situation to determine if Chapter 7 or Chapter 13 bankruptcy is right for you. If you qualify, these caring professionals will provide support every step of the way to prepare and present your case with confidence. Visit the firm online to learn more about their services or call (931) 372-9988 to schedule a consultation today.