If you live in Waco and feel like there is no way you will be able to get your debt under control, keep in mind that you have options. For some people, debt counseling is enough to help them get back on track. However, many others require additional help, such as bankruptcy, in order to reorganize their finances and pay down their debt.

While many people think of bankruptcy as a sign of financial failure and ruin, the reality is that bankruptcy is an invaluable tool that can help you out of an endless cycle of debt. If any of the following scenarios apply to you, take it as a sign that it is time to file for bankruptcy.

Debt collectors are suing you

If you default on debts, the result could be a lawsuit. For instance, if you stop paying a credit card bill, the credit card company might eventually sell the debt to a collector. If you do not respond to requests for payment from the collection agency, it might file a lawsuit in order to attempt get you to pay the debt. If you file for bankruptcy, it might provide you with some protection against other collectors. In general, bankruptcy will stop other debt collectors from trying to force you to pay or filing additional lawsuits.

A collector is garnishing your wages

Even if a debt collector wins a lawsuit, it could be hard for the collector to receive payment from you. One of the options a debt collector has is to file with the court to begin wage garnishments. If your paycheck is not as high as it should be, it could be because of wage garnishment. If this is happening, it could be time to file for bankruptcy.

You’re using credit cards for your bills

Another sign that you should seriously consider bankruptcy is if you are using credit cards to make ends meet. In other words, if you are using your credit cards to buy groceries or to pay your monthly utility bills, then you are only working yourself deeper into debt.

If any of the above situations apply to you, then bankruptcy might be your best option in order to reorganize your finances and take care of your debt. Remember, if you file for bankruptcy, you are not giving up or failing. Instead, you are utilizing a tool to help you get your finances back on track.