Debt can begin to overwhelm your life to the point that you can't pay everything you need to on time. Once you are late with bills and collectors start to call, the stress of your declining credit score and constant harassment only makes the problem worse. Bankruptcy can help you gain control over your finances so that you can move forward financially and get back on top of your finances. Even if you have debt you can't write off, the unsecured debt you can discharge will help reduce the amount you have to pay monthly on your overall debt. When you can't seem to get your bills under control, it's time to consider filing for bankruptcy.

When Debt Keeps Growing

If all you can do is pay your minimum payments every month on your credit card bills, your debt is going to continue to grow even when you aren't using your credit cards anymore. If you aren't able to get ahead with your debt, it's time to do something about your financial situation. When you have too many monthly obligations and you are continuously falling behind on your bills, your credit score will suffer and you won't be able to secure a personal loan to get a better handle on your debt.

Debt You Can't Discharge in a Bankruptcy

When you have student loan debt, you owe back taxes, or you are behind on child support payments, none of this debt can be discharged when you file for bankruptcy. The benefit of filing for bankruptcy comes when you no longer have to worry about minimum payments on your credit cards and other unsecured debt. You can take the money you were spending on your credit cards and unsecured debt payments and use it to get your secured debts under control.

Bankruptcy and Your Credit Score

Bankruptcy is going to have a negative effect on your credit score, but so is getting behind on your unsecured debt. Once you come to the determination that you won't be able to pay off your unsecured debt, bankruptcy will give you a fresh new start. While you will need to wait a few years for your credit score to rise, eventually it will recover.

When you make the decision to file for bankruptcy, you will be taking a big step at getting your financial life back in order. Know what debts you can write off and find a bankruptcy law attorney that can help you. For more information, you can contact legal professionals like Charles J Schneider PC.