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Important reasons to consider filing for bankruptcy

You never intend to get into debt. But while paying off the money you borrowed is your goal, sometimes it does not work out. Financial troubles hit us all in different ways. Whether your employer reduces your working hours or your business slows down, you might see the debt start piling up. 

As you continue down the path of financial turmoil, you probably feel scared of bankruptcy. However, bankruptcy may be the most viable solution in certain cases and help you get back on your feet. Here are some signs you should start to consider filing for bankruptcy

1. You cannot afford minimum payments

Is your monthly budget leaving you without the funds to make even the minimum payments on your unsecured debts? This is one of the clearest signs you have way too much debt. If you are lucky, you might be able to negotiate a lower monthly payment. Otherwise, you should start thinking about bankruptcy. 

2. Your lender is about to foreclose your home

If you are underwater on your mortgage and facing foreclosure from your lender, you might be able to find relief through bankruptcy. Bankruptcy puts an automatic stay into place, which can prevent or delay foreclosure. Chapter 13 bankruptcy may also let you catch up on missed payments. 

3. Someone else will begin to suffer

If you have an elderly parent, children or a disabled spouse, you might be struggling to take care of him or her while staying afloat. According to Yahoo Finance, you need to consider if you have enough emergency funds to take care of your loved one if something unexpected happens. You might need to declare bankruptcy simply to ensure the wellbeing of the people dependent on you.

Bankruptcy can be an intimidating word, but it can actually help. While your financial situation might scare you, it is possible to get back on track. Talk to a bankruptcy attorney about your options.

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