Financial stress can feel isolating, but it’s more common than you think. Every year, millions of Americans face difficult decisions due to mounting debt. Whether the cause is medical bills, job loss, divorce, or simply the high cost of living, debt can quickly spiral out of control. At Brian G. Hiatt, Attorney at Law, I help individuals and families throughout Illinois understand their legal options, including Chapter 7 and Chapter 13 bankruptcy. Bankruptcy isn’t a failure, it’s a legal tool designed to help you get a fresh financial start.

So how do you know if it’s time to seriously consider filing for bankruptcy? Here are five common warning signs.

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

If you’re stuck making minimum payments each month, you’re likely not even covering the interest. Over time, the balance grows, and it becomes harder to escape the cycle of revolving debt. Bankruptcy can discharge credit card balances and help you regain control of your finances.

2. Debt Collectors Are Calling Constantly

Are your days filled with calls, letters, or threats from debt collectors? Once a debt has been sent to collections, it can feel like harassment. Filing for bankruptcy triggers an automatic stay—a legal order that stops all collection activity immediately, giving you room to breathe.

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

Missing car or mortgage payments can put you at risk of repossession or foreclosure. In many cases, filing for Chapter 13 bankruptcy can allow you to catch up on missed payments over time while keeping your home and vehicle. Even Chapter 7 may give you temporary protection while you evaluate your options.

4. You’re Using One Credit Card to Pay Off Another

Shuffling balances between credit cards or taking out new lines of credit to cover existing ones is a red flag. This type of debt behavior is not sustainable—and it may indicate that your financial situation requires a reset. Bankruptcy can eliminate unsecured debt and help you stop the cycle.

5. Your Wages Are Being Garnished

A wage garnishment can make it impossible to cover basic expenses. If a creditor has already taken legal action to garnish your wages, it’s time to act. Filing for bankruptcy can stop garnishments and, in some cases, even help you recover some of the garnished funds.

Chapter 7 vs. Chapter 13 Bankruptcy: Which One is Right for You?

There are different types of bankruptcy, and each has its own eligibility requirements and benefits:

• Chapter 7 Bankruptcy (also known as liquidation) is typically for individuals with lower income and primarily unsecured debts. It can quickly eliminate credit card balances, medical bills, and personal loans.
• Chapter 13 Bankruptcy (also called a wage earner’s plan) allows you to keep your assets and repay debts over a three- to five-year period. It’s ideal if you have a steady income but need time to catch up on missed payments.

At Brian G. Hiatt, Attorney at Law, I will carefully evaluate your financial circumstances and recommend the path that’s most beneficial for you.

You Deserve a Fresh Start

Bankruptcy isn’t the end—it’s the beginning of a new chapter. With the right legal guidance, you can stop creditor harassment, protect your home and wages, and finally move forward with peace of mind. Don’t wait until your options are limited.

If you’re overwhelmed by debt and unsure of your next steps, it’s time to get the answers you need. Contact Brian G. Hiatt, Attorney at Law, at (815) 304-5441 or send a message through the website to schedule your free debt relief consultation. Let’s find the right solution—together.