If you’re struggling with overwhelming debt, you’re not alone—and you don’t have to face it without guidance. At the Law Offices of Andrew F. McKenna, P.C., we help people throughout Colorado understand their options, including whether bankruptcy could offer a fresh financial start. Recognizing when it's time to consider bankruptcy can help you take proactive steps toward regaining control of your finances.

1. You’re Only Making Minimum Payments on Credit Cards

If you’re consistently unable to pay more than the minimum on your credit cards, it could be a sign that your debt is growing faster than you can manage. Over time, interest and fees compound, making it even harder to catch up.

2. Debt Collectors Are Calling

Frequent calls, letters, or even threats of legal action from debt collectors suggest that your debts have fallen into serious delinquency. Bankruptcy can stop these calls through an automatic stay and help you restructure or discharge certain debts.

3. You’re Using One Credit Card to Pay Another

Using credit to pay other credit obligations is a red flag that your financial situation may be unsustainable. This cycle can escalate quickly and lead to a deeper debt trap.

4. You’re Falling Behind on Mortgage or Car Payments

Missing payments on secured loans like your mortgage or car loan puts essential assets at risk. Bankruptcy may help you keep your home or vehicle while catching up on overdue payments through a repayment plan.

5. Your Wages Are Being Garnished

If a creditor has obtained a court judgment and your wages are being garnished, bankruptcy may provide relief. Filing for bankruptcy generally stops wage garnishment and may even allow you to recover some of the garnished funds.

6. You’re Considering Taking from Retirement Savings

Dipping into retirement accounts to pay off debt can jeopardize your future financial security. Most retirement funds are protected in bankruptcy, so you can preserve those assets while resolving your current debts.

7. You’ve Experienced a Major Life Change

A divorce, job loss, medical emergency, or other significant event can drastically affect your financial stability. If your income no longer covers your expenses, bankruptcy might offer a solution.

When to Talk to a Bankruptcy Attorney

If one or more of these signs apply to you, it may be time to speak with a bankruptcy attorney. At the Law Offices of Andrew F. McKenna, P.C., we provide compassionate, judgment-free legal assistance to individuals across Colorado. We can review your financial situation and help you determine whether Chapter 7 or Chapter 13 bankruptcy—or another solution—is right for you.