Mahaffey & Associates, LLC
Call For A Free Consultation

Is it time to file personal bankruptcy?

Is it really time to file for personal bankruptcy? Should you try waiting a little longer while you lock away the credit cards and tighten your budget to see if you can get your finances under control?

Ultimately, you have to make the decision whether or not to file for bankruptcy on your own, but there are some good signs that continuing to try to get your finances in order is merely delaying the inevitable:

1. The minimum balance on your credit cards is all you can pay.

That's a good sign that you're too financially strapped to make any real progress toward solvency.

2. You owe more than you can possibly pay off in two years.

Experts suggest using a two-year test because it takes about that long to repair your credit after bankruptcy. If you're struggling for nothing, the struggle probably isn't worth it.

3. You've fallen behind on multiple accounts.

Anyone can forget to pay a bill for a month -- but if you're routinely behind on your bills or behind on most of them, the interest and penalties are adding up. Plus, each month you're behind is another ding on your credit.

4. You owe a lot more than it takes to file bankruptcy.

Filing bankruptcy is no financial picnic. It costs to file and it costs to have an attorney and it will cost you in terms of higher interest rates as it impacts your credit score. However, if you compare the fees to your monthly debts and realize that bankruptcy is actually the cheaper option, it's probably time.

5. You're drowning under a sea of debt collectors.

If the debt collectors are hounding you day and night, your wages are being garnished or you've just been served with a lawsuit from a creditor -- think about acting now rather than later. You're probably long past the tipping point where you should have filed Chapter 7 a while ago in order to protect yourself and your future.

Remember that bankruptcy isn't an ending -- it's actually the beginning of a new start in your life.

Source:, "Weigh the Costs and Benefits of Bankruptcy," accessed Oct. 06, 2017

No Comments

Leave a comment
Comment Information

Ready To Help

Call Mahaffey & Associates, LLC, toll free at 888-422-6894 to speak with one of our experienced lawyers.

We offer free initial phone consultations. Evening and weekend appointments are also available upon request.

We accept Visa, MasterCard, Discover and American Express.

VISA | MasterCard | American Express | Discover Network
Tell Us About Your Legal Need

Tell Us About Your Legal Need

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

A Full Service Firm For Northwest Ohio with Three Convenient Locations 24/7 Phones And Appointments Taken at 888-422-6894.

Sylvania Office
8527 Central Avenue
Sylvania, OH 43560

Sylvania Law Office Map Phone: 419-829-2255

Northwood Office
3200 Woodville Road
Northwood, OH 43619
Map & Directions Phone: 419-693-5515
By Appointment Only

Toledo Office
3131 Executive Parkway, Suite 100
Toledo, OH 43606
Map & Directions Phone: 419-472-5555
By Appointment Only