5 Signs That Bankruptcy May Be Warranted

Your debts have been growing for some time and you’ve been fighting the good fight in an effort to keep up with them. How do you decide when it’s time to seek relief under federal bankruptcy protection? Here are five signs that bankruptcy might be a wise option.

Christopher Migliaccio
September 30, 2018


  1. You’re using credit cards to make ends meet. If your debts have been building for some time and your income has remained steady, you may have found there isn’t enough cash to cover your living expenses, credit payments, and still keep food on the table. This often begins a vicious cycle when people begin using credit cards to pay bills so they have enough cash to cover the minimum payments on the credit cards.
  2. You’ve stopped planning for the future. When every cent you earn goes toward your debt, it’s hard to think about the future. You may have stopped saving for home improvements, retirement, or even for emergencies, putting all your funds toward debt reduction with no improvement in your overall financial health.
  3. Your credit card balances are growing even though you’re not spending. If you make only minimum payments on your credit cards, you are charged interest on the balance you carry. The interest then becomes part of the principal amount due, and you are charged interest on that as well. Add in late charges and over-the-limit fees, and the balance can easily grow in a very short period of time.
  4. You’re afraid to answer the phone. Creditors are relentless in their attempts to collect debt once you’ve fallen behind in your payments. If you dread the arrival of mail each day because of the stack of past due notices you know will be waiting, or don’t answer the phone to avoid harassing calls, it might be time to consider bankruptcy.
  5. Your health is deteriorating from chronic stress. Strong people show what they’re made of when things get tough. But ongoing financial difficulty, especially when it’s getting worse in spite of your best efforts, will eventually affect your health. Insomnia, heartburn, headaches and hypertension all are associated with stress. Deteriorating health will eventually affect your work performance, further jeopardizing your situation.

Sometimes good people with the best intentions find themselves in circumstances that are beyond resolution. If you’re one of them, schedule a consultation with an experienced attorney in your area and find out if bankruptcy might offer you relief.


Warren & Migliaccio, L.L.P. practices law in Dallas County, Collin County, Rockwall County, and Hunt County. Whether you live in Dallas, Garland, Richardson, Plano, Allen or other Dallas, Texas suburbs, we are dedicated to delivering the highest standard of legal representation and putting you first.

About The Author

Christopher (Chris) Migliaccio is a native of New Jersey and landed in Texas after graduating from law school. A graduate of the Thomas M.Cooley School of Law in Lansing, Michigan, Chris focuses on what is best for your financial situation – Chapter 7 versus Chapter 13 bankruptcy in Texas. When ...

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