You were living a little bit above your means, but you loved the idea of being able to get the things you wanted without having to wait. You took out too many credit cards and used them until they were maxed out.

You had a good job, so you knew that you could pay off the debts with only two or three months of your wages. Unfortunately, the economy started to slow down, and you ended up laid off.

Now, you’re on unemployment, but you’re not getting enough to pay all of your bills each month. You’re struggling to pay your rent and utilities, so your credit cards are behind. What should you do?

Consider bankruptcy when you can’t get caught up

When you’re struggling to get caught up on what you owe and don’t have enough income coming in to make the minimum payments on your debts, it’s time to look into bankruptcy. Both Chapter 7 and 13 could be good options for you. Both would allow you to get your finances back under control and to dismiss debts once you complete the requirements set by the court.

You may have heard that bankruptcy is like giving up or admitting defeat, but the truth is that it’s simply admitting that you need to have some help. Everyone goes through difficult times, and if your finances are stretched too thin, bankruptcy could be a good way to help you eliminate your extraneous debts.

Our website has more information about bankruptcy and why you may want to seek it if you have lost your job or can’t find a way to get out of debt.