It can be difficult to decide you need to file personal bankruptcy. Many people feel responsible for fully repaying their debts, even if they’re currently falling behind due to illness, job loss, or another unplanned event. Nevertheless, sometimes it’s the best course for your financial health. Here are some signs you need to consider filing for bankruptcy.

3 Signs You Should Consider Personal Bankruptcy

1. Your Wages Are Being Garnished

Under certain circumstances, a creditor can obtain a court order to have your wages garnished. When this occurs, your employer is obliged to withhold a certain dollar amount from your paycheck and turn it over to your creditor until the debt has been fully repaid. However, filing for personal bankruptcy places an automatic stay on wage garnishment.

2. You Face Foreclosure or Repossession

If you’re in danger of losing your home due to foreclosure or your car through repossession, filing for personal bankruptcy interrupts these procedures until the court has had a chance to review your case. If the court grants your petition to discharge your debts, you’ll have more funds to dedicate toward these assets.

3. You Can't Pay Your Bills

If you’re spending so much on repaying your debt that you can’t afford other bills or living expenses, it's time to consider personal bankruptcy. You shouldn't have to miss meals or ration your medication because you experienced a sudden medical emergency or unexpected job loss.

If you need to file for personal bankruptcy, contact Donald L. Spafford, Jr., Attorney at Law in Honolulu, HI. He and his team have served clients throughout Oahu for more than 30 years and specialize in personal bankruptcy and debt consolidation. Call (808) 532-6300 to arrange a consultation, or find out more about their practice areas on their website.