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Deciding to file for Chapter 7 or Chapter 13 bankruptcy is a very difficult decision that affects you and your family in many ways. Although the numbers of people filing for bankruptcy is increasing, many people are still uncertain whether bankruptcy is a good option. Here are some signs that filing for Chapter 7 or Chapter 13 bankruptcy is the right move for you:

1. Your Home Is at Risk for Foreclosure

Typically, the threat of foreclosure on your home is symptomatic of larger financial issues. While some homeowners are able to juggle their mortgage along with other debts, others cannot and subsequently fall behind on their payments. However, filing for Chapter 7 or Chapter 13 bankruptcy can temporarily halt the foreclosure process. This can give you and your family a chance to find alternative living arrangements, and could even save your home.

2. You’re Being Sued

If you don’t respond to typical debt collection strategies, your creditors may file a civil suit to recover owed debt. To avoid this or halt the process, many individuals file for bankruptcy. Doing so will grant you an automatic stay, which means that all legal proceedings and debt collection must stop. You’ll be protected from creditors and lawsuits throughout the course of the bankruptcy proceedings.

3. Other Strategies Haven’t Worked

The conditions that cause a person to file for bankruptcy don’t develop overnight. After other debt management strategies such as debt counseling, debt settlement, and negotiations have not worked out, filing for bankruptcy may be the only way to gain control of your debt.