When to Choose Bankruptcy

HowToChooseNo one really wants to file bankruptcy and most people explore every other option for handling their debt before considering filing. But sometimes it truly is the best choice for taking care of debt that has been dragging you down and keeping you from living life to the fullest. So how do you know when it’s time to file bankruptcy?

There are a few indicators that might mean bankruptcy is the best choice for you.

  • Making minimum payments – If you are only able to make minimum payments on credit cards, it is going to take you a very long time to get out of debt and you will end up paying much, much more than you originally owed due to interest.
  • Making late payments – If you find yourself consistently making late payments, your credit is already being damaged. Try to figure out why the payments are late. Is it because you don’t have the money or do you just need to get more organized with your bills? If it’s lack of money, bankruptcy might be an option.
  • In danger of losing house or car – After enough late or missed payments, you may receive notifications that your car is going to be repossessed or your house is going to be foreclosed upon. Filing bankruptcy stops these actions, at least temporarily. Depending on the type of bankruptcy you file, you may be able to keep your home and car, but only if you are able to continue to make the payments once the bankruptcy is complete.
  • Using credit to pay credit bills – If you’re living out the old saying “robbing Peter to pay Paul” you are probably in debt over your head. It may be time to stop an unhealthy cycle by looking into bankruptcy.
  • Having wages garnished – It depends on the type of debt being collected, but once you are at the point of having your wages garnished by the court, bankruptcy may be the best choice you can make.


Bankruptcy can damage your credit and make it more difficult to get credit in the future, so be sure you explore alternatives to bankruptcy before you file. Can you call your creditors to negotiate lower payments or interest rates? Have you thought of getting help from a Credit Counseling Agency? Are you able to get by while chipping away at your debt? It may be best to just keep paying your debt, knowing that it will eventually be gone.

However, if you come to the realization that your debt is a hole you simply can’t dig yourself out of, bankruptcy could be for you. Take some time to weigh your options and then give me a call. I would be happy to walk you through the process and help you make an informed decision. When you are ready, your new life of being debt free is simply a phone call away.

Let Us Help

We are here to help as you strive toward financial freedom. We’re experienced and have up-to-date knowledge about all the aspects of bankruptcy law. Don’t feel like you have to navigate the system alone. We’re here to take your call!  Contact us today to get started. Click here if you need a Eugene bankruptcy attorney , or check here for our other Oregon and Washington locations.