5 Signs It Might Be Time to Consider Bankruptcy

Introduction: No one plans to fall behind on bills or struggle with debt—but it happens. Medical emergencies, job losses, or unexpected expenses can quickly snowball into a financial crisis. At Clean Slate Michigan, we help people from all walks of life understand when it’s time to take action—and how bankruptcy can be a powerful step forward.

If you’re not sure whether it’s time to consider bankruptcy, here are five signs that it might be the right solution for you.

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

If you’re stuck in a cycle of making minimum payments—while balances barely budge—it can feel like you’re on a financial treadmill with no end in sight. Interest rates add up quickly, and without a realistic way to pay off your debt, bankruptcy may offer a clean break.

2. Debt Collectors Are Calling Nonstop

Constant phone calls, letters, or even threats of legal action from creditors are more than just stressful—they’re a sign that your debt has reached a critical level. Filing for bankruptcy immediately stops collection efforts through what’s called the automatic stay, giving you breathing room and peace of mind.

3. You’ve Fallen Behind on Rent or Mortgage Payments

Missing housing payments can lead to eviction or foreclosure. Bankruptcy—especially Chapter 13—can help you catch up on those payments over time while keeping your home.

4. You’re Using Credit to Pay for Essentials

If you’re regularly swiping a credit card to cover groceries, gas, or utility bills, your debt may be unsustainable. This is one of the most common early warning signs we see, and it’s often when clients first reach out for help.

5. You’re Losing Sleep Over Money

Financial stress takes a toll on your mental and physical health. If money worries are affecting your sleep, relationships, or job performance, it’s time to explore solutions that bring relief—not just more stress.

You Deserve Relief—Not Shame

Bankruptcy isn’t a failure. It’s a financial tool designed to help good people get out of bad situations. At Clean Slate Michigan, we’ve helped thousands of clients restart their financial lives with dignity and confidence.

You don’t have to navigate this alone. Call 517.374.8000 or visit cleanslatemichigan.com to schedule your free, no-pressure consultation. Whether bankruptcy is the right fit or not, we’ll help you understand your options and take the next step with clarity.