While bankruptcy has a negative reputation, filing can actually be a positive step for someone struggling to repay debt. By doing so, you can stop the creditor calls and begin rebuilding your finances. 

These five signs indicate that you could potentially benefit from filing for Chapter 7 or Chapter 13 bankruptcy. 

You have faced hardship 

Life’s challenges often bring unforeseen financial issues. If your debt problems arose because of job loss, divorce, illness or injury, bankruptcy could bring the breathing room you need for an economic recovery. Most people who file for bankruptcy have made a true effort to repay their obligations before meeting unexpected financial obstacles. 

You skip some bills 

If you find yourself prioritizing which bills to pay each month, it may be time to think about relief. With bankruptcy, you can either discharge or reorganize your debts based on your income. You will have affordable monthly payments without the interest and late fees that come from juggling your debts. 

You make minimum payments 

When you only pay the minimum amounts on your credit cards each month, you create even more debt. Mounting interest makes it almost impossible to get out of the credit card cycle if you cannot afford to pay off most of the monthly balance. 

Your expenses exceed your income 

If you spend more than you earn each month, you need help to turn your financial situation around. Create a realistic budget that shows your income and expenses each month. If your bills add up to more than your paycheck and you cannot find a way to cut costs, consider exploring bankruptcy. 

You may lose your vehicle or home 

Secured debts include mortgages and auto loans that place a lien on the financed property. If you fall behind on these payments, you could have your car repossessed or home foreclosed. If you file for bankruptcy, you can save your home, your vehicle and other personal items. Texas residents can keep unlimited equity in a primary residence. 

If these signs sound familiar, review the eligibility requirements for a Texas bankruptcy filing.