My wife and I made the decision to open a residential cleaning business. We needed enough money to get the equipment, do a bit of advertising and get the licensing and insurance to protect ourselves and our customers. For about two years, things went very well, but then, things took a terrible spin for the worst after we hired a few employees to help us with the workload. Since then, we have gone bankrupt and have gone back to working full time jobs. If you are struggling with your business and considering bankruptcy, this blog can give you some answers to the many questions that you have.
There comes a point where enough is enough. You've been up to your eyeballs in debt for years. You've tried various repayment plans, you've restructured your debt a few times, and yet you still can't make ends meet. What's left is to take the plunge and declare bankruptcy. This is a big step, and it's only one you should take when you're confident that you're ready and that no other option will work. So, what are the signs that you're ready to declare bankruptcy?
1. You've met with a financial advisor.
Formulating a debt repayment plan is not easy. You'll need to trim your budget, sometimes in very creative ways. You may need to make some late payments so that others can be made over time, preventing you from paying too much in interest. If you're not experienced in making financial plans, it's a very difficult thing to do on your own. So, meeting with a financial advisor is a smart choice. If you have already met with an advisor and are still unable to pay off your debt, in spite of trying your best to follow the advisor's plan, then this is a sign that you are ready to declare bankruptcy.
2. Your debt is dischargeable.
Before you decide to declare bankruptcy, you need to check to see whether your debt is dischargeable. The following kinds of debt cannot typically be discharged with bankruptcy:
If most of your debt falls into one of these categories, then declaring bankruptcy is not the answer. On the other hand, if your debt is mainly consumer debt, personal loan debt, medical debt, or money owed under a lease or contract, then this is a sign that it may be time to declare bankruptcy.
3. You're still living on credit.
When it's time to buy the groceries or pay for other essentials, do you pay for them on credit? If you keep accumulating new credit, you will have a very hard time digging yourself out from under your pile of debt. If you're spending on luxury items and cutting out that habit would leave you enough money to pay the bills, then that's one thing. But if you need to buy even the essentials on credit, this could be a sign it's time to declare bankruptcy and get your financial life off to a new start.
4. Creditors are calling you nonstop.
Are you afraid to pick up the phone because you think a debt collector may be on the other side? Constant calls from debt collectors can be overwhelming and can stop you from enjoying life. This is the factor that drives many people to finally take the big step and declare bankruptcy. When you do declare bankruptcy, debt collectors are required to stop calling you, so you can finally get some peace and pick up the phone with confidence.
5. You have found a good attorney.
Declaring bankruptcy without the help of a good lawyer is a huge battle. So, you're not really ready to declare bankruptcy until you have a good lawyer on your side. Look for someone who has experience with bankruptcy cases. A bankruptcy law attorney can ensure all paperwork is filled out properly so you do not end up getting your application rejected without good reason.
Declaring bankruptcy is a huge step, but for many people, it is the right step. If you can relate to some or all of the points above, then you may be ready to declare bankruptcy. It will take a while, but your life will return to order sooner than you think.
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