Recognizing the Signs That You Can’t Pay Your Debt

For many people, the ability to pay off their debts is a point of pride. Paying off one’s debts is traditionally perceived as indicating a solid work ethic and good moral character. However, sometimes it simply isn’t possible to make ends meet and still pay debts. If this describes your situation, it might be time to consult a bankruptcy attorney. If you are truly unable to pay your debts, bankruptcy can offer a second chance.

Are You Trying to Ignore Your Debt?

Ignoring a problem is rarely effective. Ignoring your debts will only lead to greater problems, such as repossession of your vehicle or foreclosure of your home. If you’ve been avoiding answering your phone for fear of speaking with yet another debt collector or if you haven’t been opening your mail to avoid looking at your bills, it may be time to consider filing for bankruptcy. Taking action sooner, rather than later, is always advisable because paying bills late or not at all will only add to the problem.

Do You Lack a Plan to Pay It Off?

Another sign that it may be time to consult a bankruptcy attorney is if you lack a financial plan or if you’ve been ignoring the plan you already have. Consumers who are in debt would be well advised to establish a specific date at which they will make their last payments.

Are Your Savings Diminishing or Non-Existent?

Many consumers who begin accruing significant debts start dipping into their savings to make ends meet. Although they may have the best of intentions to replenish their savings accounts, this can often prove difficult. If your savings account balance has been declining or you lack any substantial savings at all, a bankruptcy lawyer can help you get back on track.

Countless people fall into debt through no fault of their own.