Like most Americans, you likely have substantial debt. Whether you financed your college education, underwent serious medical treatments or have a job that does not cover all your monthly living expenses, you might feel like you are in over your head financially.

While bankruptcy may not be your first choice, it could be your best option for getting back on track. But how do you know when you should file?

Five situations which could indicate you need to get your finances in order

You should not count on bankruptcy to absolve your responsibility in student loan debt, tax liability or child custody payments. However, there are many situations where you might need to regain control of your financial situation – regardless of how much money you earn.

For a wide variety of reasons, financial struggles can affect people in every industry and income bracket – often through no fault of your own. If you are struggling financially and wonder whether bankruptcy might be a viable option for your situation, consider whether you:

  • Are getting further in debt by charging your everyday purchases
  • Have already refinanced your loans or negotiated with your lenders
  • Use your retirement savings to pay your bills
  • Face automobile repossession or home foreclosure
  • Carry revolving debt greater than your annual income

And if your wages are garnished, you probably know you need to take action.

Bankruptcy may be the best solution for you

Admitting you need help can be humbling, especially considering the societal pressures you may face to keep up with those around you.

However, depending on your situation, bankruptcy could provide a more affordable way to keep your home and vehicles. And while your bank balance or credit score is nobody else’s business, improving your situation may be what you need to enjoy the life you have worked so hard to establish for yourself.