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Personal Bankruptcy: When Is It Time To Call It Quits?

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Bankruptcy is not officially a dirty word, but it might as well be. On nearly every occasion it is uttered it strikes fear in the hearts of the general populace and if it is encountered is faced with the utmost consternation as well as deep despair. You cannot turn on the news, the computer or peruse the Internet on your tablet or smartphone without endearing some tale of corporate or personal bankruptcy woe.

And how about those gossip columnist’s nearly endless chit chat about some of the world’s most famous people who couldn’t manage their millions? If high flying stars such as Rapper 50 cent, actress Kim Basinger, crooner Marvin Gaye and lauded director Francis Ford Coppola couldn’t stop the financial well from going dry, what does that say for the average middle class citizen struggling to live from paycheck to paycheck? Clearly it’s a jungle out there and with the majority of the world possessing debt, it can be downright frightening to when you feel you cannot keep your head above water. So what are the signs and situations that you are drowning and your best option is to file for personal bankruptcy.

 Should You File For Personal Bankruptcy?

Here are five most essential questions to ask yourself in regards to your present financial circumstances:

  • Are you struggling to only pay the bare minimum on your accounts?
  • Are you being hounded by bill collectors?
  • Do you feel a sinking pit in your stomach when you think about your finances?
  • Do you buy groceries or other necessary items for survival with your credit cards?
  • Have you pondered approaching a debt consolidation company for help?
  • Do you have any idea what the total amount of your debt is?

Assess Your Current and Future Circumstances in Regards to Personal Bankruptcy

If your response was in the affirmative to at least two of these questions, you really need to sit down and determine your course of action. The most simplistic definition of a personal bankruptcy is that you have accumulated more debt than your financial resources can manage. To discover how dire your circumstances are collect all your assets, leaving nothing out, and add them together for the total sum of what funds are available to you. In other words, what you are worth.

The next step is to review each and every bill. If what you are worth is not enough to resolve the amount of money owed, declaring a personal bankruptcy may very well be the best choice. Remember, a personal bankruptcy is not something to be approached lightly. There are serious ramifications to your credit score that follow you for years to come and it is not a solution to amass bills with the thought of not paying them off.

 

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