On behalf of Law Offices of Kathleen G. Alvarado on Saturday, May 5, 2018.

While the nation’s economy continues to improve, not everyone is reaping the benefits. The amount of credit card debt Americans have continues to climb. According to a cnbc.com report, the average American carries over $6000 in credit card debt, which is up three percent from 2017. The Federal Reserve reports that total credit card debt as exceeded $1 trillion, the highest ever reported.

This suggests that even with financial prosperity, people who commonly struggle with debt may go through periods where they make headway towards financial recovery, only to have a setback that leaves them deeper in debt. It is not uncommon for people to experience several of these cycles before considering whether they should file for bankruptcy protection. Even after these cycles, many may still question when the right time would be to file bankruptcy.

The reality is that every situation is different, so there is no standard “right” time for bankruptcy that will fit every situation. Regardless, there are a number of issues that can bring about bankruptcy. This post will identify three of them.

Budget concessions are not working – After cutting expenses, sticking to a budget and still having a tough time paying bills, chances are that a bankruptcy discharge will help in getting back on your feet financially.

Facing foreclosure or repossession – The prospect of losing your home in foreclosure or having your car taken away can be a scary and stressful experience. The notices you receive may leave you feeling like there is no way to keep the home you worked so hard for. A bankruptcy petition stops all collection efforts, so you may buy time to stave off a foreclosure or create a plan to keep your car.

Creditor harassment – Caller ID may be helpful in avoiding creditor calls, but you have to pay them eventually before they bring lawsuits or garnishment actions. Nevertheless, if creditors are constantly calling and you have no ability to pay them, bankruptcy can help in obtaining some relief.

The preceding is not legal advice. Every situation is different, so it is helpful to speak with an experienced bankruptcy attorney.