Bankruptcy refers to the beginning of an end. It's a legal process in which you are unable to pay back your debts any longer. And in order to get out of this debt, you need to file bankruptcy. It stops creditors from coming after you for your debts so you can try to start over. In this process, you may or may not be able to keep some of your assets, especially if you are unable to afford the monthly payments on them, such as vehicles, your home, or other types of sports vehicles such as a boat, motorcycle, or ATV. If you aren't sure if you need to file for bankruptcy, or if you'd even qualify for bankruptcy, read on for a few signs that it is time.

1. You've Exhausted All Means Of Income

If you've emptied your bank accounts, savings, the retirement that you have access to, or borrowed from family and friends, it may be time to consider filing for bankruptcy. If you've borrowed more than you can pay back and you have no way of getting any more money in order to pay back your debts, you need to consider filing for bankruptcy. Borrowing any more from family or friends is only going to put you even more into debt and can ruin relationships. 

2. You Can't Afford Everyday Necessities

If you are unable to afford everyday necessities you need to survive, such as electricity, water, and groceries, you need to consider filing for bankruptcy. These are just the basics you should be able to afford, but if you can't afford these in addition to your other debts, it's time to consider filing for bankruptcy. Be sure you aren't putting your money towards things that are not necessary, such as cable, an expensive cell phone, or you are spending all of your money going out to eat. If this is the case, you may not need bankruptcy, just better budgeting.

3. Your Creditors Are Filing Lawsuits

If your creditors are filing lawsuits against you for repayment of the debts you owe, you could end up in more financial trouble than you can handle yourself. You could end up owing money in court fees, and possibly interest as well. If you are getting a summons to appear in court for debts you owe, you should consider filing for bankruptcy. Some things may not be covered under bankruptcy, such as child support or payment for alimony. 

If you aren't sure if you should file for bankruptcy, or even if you would qualify for bankruptcy, you should make an appointment with a bankruptcy attorney to get all of the facts to help you decide. Click here to learn more.