Filing for bankruptcy can make you feel like a failure. When you are getting overwhelmed with creditors and you are falling behind month after month, it's time to take control of your financial health. If you have too many credit cards or medical debt that you just can't pay back, you have options. If you are only paying minimum payments and your debt continues to grow, bankruptcy laws help you get out from under the mountain of debt. You aren't a failure for choosing bankruptcy but are instead taking control of the debt that is causing you anxiety and stress every day as you work hard without any relief in sight.

Unsecured Debt That is Growing

If you have high-interest credit cards, then you know it takes more than paying the minimum payments every month to get the debt under control. Even a small $500 credit card can end up costing you hundreds of dollars to pay off over a few years. If you have an old car loan or old utility bills, the fees that compound the bill every month because you can't pay it off make the debt impossible. When your unsecured debt is growing despite your efforts to pay it off, it's time for a different solution.

Meeting the Means Test to File For Chapter 7 Bankruptcy

When your income is low, you may qualify automatically for a Chapter 7 bankruptcy. If your income for the last six months is below the average mean income in your state, you have the right to file for a Chapter 7 bankruptcy. Even when your income is higher, it is your disposable income that is considered. You will have to take the means test when your income is higher than the average, but you may still have the ability to wipe out unsecured debt with bankruptcy.

Restructuring Your Debt Instead

If your income is too high, you can still file a Chapter 13 bankruptcy. This plan gives you a chance to get ahead of your debt by creating a payment plan that you can afford every month. Once you satisfy the terms of your agreement, your debt will be paid off.

Debt is hard to overcome when your income is too low. If you are constantly trying to figure out how to pay your bills and they continue to grow, it's time to talk with a bankruptcy attorney about a solution.