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At some point, almost everyone will go through a rough financial period due to a job loss, medical emergency, or other unexpected event. While you might be able to dig your way out of debt, many people need bankruptcy protection to get their finances back under control. Here are some of the most common signs you should consider bankruptcy as a debt relief option.

4 Signs You May Need to File Bankruptcy

1. You’re Missing Payments

Missing payments on credit cards and other debts often results in high penalties and skyrocketing interest rates that can make catching up nearly impossible. If you can’t make at least the minimum payments on your debt, bankruptcy may provide a way to break the cycle.

2. You’re Buying Necessities on Credit

bankruptcyAfter paying your bills, you might not have enough left over for food, dish soap, and other day-to-day necessities. If all of your money is going toward your bills and you’re putting basic living expenses on your credit cards, discharging those debts in bankruptcy may be your best option.

3. You’re Being Harassed by Creditors

Collection agencies constantly making phone calls and sending threatening letters only makes a bad situation worse. Fortunately, filing for bankruptcy triggers an automatic stay, which puts an immediate stop to all collection activity, including phone calls, letters, and wage garnishment.

4. You’re Taking Out Loans to Pay Off Debt

In desperate situations, you might be tempted to take out a high-interest loan to catch up on missed payments or pay down debts. Unfortunately, this can put you even deeper in debt, especially if the new loan has a higher interest rate than your other accounts. Declaring bankruptcy allows most borrowers to discharge all of these debts and start their financial life over.
 

If you’re struggling with debts you can’t repay, the Bueker Law Firm offers the detailed legal advice and compassionate service you need. Attorney Jeremy Bueker has over 17 years of experience serving borrowers throughout central and southeast Arkansas and will take the time to find the right bankruptcy option for you. Visit their website for more on their debt relief services, follow their Facebook for more financial tips, and call (870) 673-1313 to request an initial consultation.

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