Filing for bankruptcy is a serious decision—but for many individuals and families in Raleigh, it can also be a path toward financial recovery and peace of mind. At the Law Office of Calvin Craig, we help clients assess their financial situation and determine whether bankruptcy may be the right next step. Here are some signs that it might be time to consider this option.

1. You’re Using Credit Cards to Pay for Essentials

If you're relying on credit cards to pay for groceries, gas, or utility bills, it may indicate that your income is no longer sufficient to meet your basic needs. This often leads to growing debt and unmanageable interest rates.

2. You're Only Making Minimum Payments

Making only the minimum payment on credit cards or loans can trap you in a cycle of debt that lasts for years. If this has become your routine, bankruptcy may provide a way to reset and eliminate unsecured debt.

3. Debt Collectors Are Constantly Calling

Frequent calls from creditors or debt collection agencies are more than just annoying—they’re a clear warning sign that your debt is out of control. Bankruptcy can help put an immediate stop to these calls through the automatic stay.

4. You’re Facing Foreclosure or Vehicle Repossession

If you’ve received a foreclosure notice or your car is at risk of being repossessed, bankruptcy may help you retain essential property. Filing for Chapter 13 can create a repayment plan that allows you to catch up on missed payments while keeping your assets.

5. You’ve Experienced a Major Life Change

Job loss, divorce, or medical emergencies can suddenly impact your ability to pay bills. If a life event has left you financially overwhelmed, bankruptcy may help you regain stability.

6. You’re Dipping Into Retirement Savings to Pay Debts

Using retirement funds to pay off current debts may seem like a short-term solution, but it can compromise your future financial security. Bankruptcy can help discharge certain debts without sacrificing your long-term savings.

7. Your Total Debt Exceeds Your Annual Income

If your total unsecured debt (like credit cards, medical bills, and personal loans) is more than your yearly income, it's often a sign that you may not be able to repay what you owe without legal intervention.