Knowing when it’s time to stop paying creditors and seek bankruptcy protection. There is a saying in the bankruptcy legal world - “If you are asking about bankruptcy, you are probably bankrupt.” No one goes to see a bankruptcy lawyer when things are good. However, filing for bankruptcy does not necessarily mean that you will lose everything (especially in Florida, where I practice law) or that you will never recover financially. It means that you need special Federal protection from the powers of your creditors. It means that you need help.
7 Signs You Need Bankruptcy Protection: You are paying credit with credit. (ie Paying one credit card with another credit card) You are only making minimum payment on credit card and foregoing basic necessities to do so. You can’t pay your mortgage because you need the money to pay credit cards. You are considering a line of credit on your primary residence to pay credit cards. (I’ll explain more later on this). You are considering taking money out of your retirement account to pay credit cards. (I’ll explain more later on this - NEVER do this). You are asking friends or relatives for loans to pay credit cards. (You’ll end up losing both). You are fighting with your spouse, partner or family over credit cards. Every situation is different, however, what I have listed above are the most common tell tale signs that I have seen in my practice of when it might be time to look for help.