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In today’s volatile business climate, many families are struggling to make ends meet. Bad practices such as using one credit card to pay off another are becoming more commonplace. It is important to note that bankruptcy can offer a direct answer to many financial woes. While many situations drive Americans to file for bankruptcy, the following are some strong signs that it may be time to consider this debt discharge process.

Constant Phone Calls from Collection Agencies

Are you drowning in a sea of unpaid credit cards of medical bills? Have the creditors transferred your case over to collection agencies? If so, declaring bankruptcy can help you wipe away all of these unsecured loans and begin a debt-free existence. So long as you earn less than the median household income in your state, you may be eligible for a Chapter 7 debt discharge.

Risk of Foreclosure

Do not lose your home without first trying all possible options to adjust your mortgage. One benefit of filing for Chapter 13 bankruptcy is that it creates an automatic stay the moment you first file your petition. This freezes any foreclosure proceeding sthat may be in place, and allows you to stay in your home while the bankruptcy judge changes the terms of your mortgage and helps restructure your loan to make it easier to pay off.

Impending Fines or Levies from the IRS

Depending on your employment and financial situation, you may be struggling to pay off IRS fines or levies from tax mistakes you made in the past. These hefty fines can force households to fall behind on other loan payments. If you cannot foresee a future of ever being able to pay off your IRS debt, it may be a good time to consider bankruptcy.