Do you know when it’s time for a fresh start?

Many people who come to see me are unsure as to whether or not they need to seek bankruptcy protection. Sadly, they often delay the decision and wait until years of income, opportunities, and protected assets such as their homestead or retirement savings have been lost. There are no hard and fast rules on when a person must file for bankruptcy, but here are 5 signs that I believe indicate that a bankruptcy filing should be given serious consideration:

  1. You are being sued for unpaid debts or your wages are being garnished to pay unpaid judgments from such lawsuits.
  2. Your car is at risk of being repossessed, or has been repossessed, for failure to make the payments.
  3. Your home is in foreclosure.
  4. You owe more than 6 months income in credit card debt.
  5. Even after cutting back all unnecessary spending, your debts are such that you can’t pay them all off in 2 years or less.