Bankruptcy is a serious matter that can affect your credit rating for up to ten years. There are many factors that come into play when making the decision to file for bankruptcy. If you have any of the following signs, schedule a consultation today to go over your options:
1. You are unable to make routine minimum payments required for credit cards and loans. This is a clear sign you are in severe financial distress that should not be ignored.
2. After a thorough and HONEST examination of your income and expenses, you determine that you spend more than you earn on a regular basis. This means that you have been accumulating debt each month with no end in sight. In addition, while you cannot pay down your debt, each month the debt gains interest – making the debt more expensive as you add on to it. This is a vicious cycle and it’s called “financial suicide”. This type of spending has to come to an end or your credit score is going to die miserably.
3. You are over your limit or at the limit on your credit cards. A sign of good financial health is to have under thirty percent of the credit limit on your credit cards and loans. If you are teetering at the limit, unable to pay down the debt this can lead to trouble.
4. You are unable to pay each bill every month and therefore skip bills for one to two months at a time and are facing notices for collection on a regular basis, or even worse, you are using your credit cards to pay for basic life necessities.
5. You are not making enough money. Are you making enough money to cover your expenses each month while contributing to a savings account or an emergency fund? This can lead to financial distress and bankruptcy.
6. You receive countless phone calls from credit card companies and collection agencies that are seeking bills for collection. When creditors are calling, it can be detrimental to the credit report – as collections are the worst thing that your credit report can face. If you are unable to afford these payments then it may be time to consider bankruptcy.
7. You are afraid to speak to your significant other about money issues or avoid the topics altogether. This can be a sign of financial disarray and should not be ignored. Ignoring the problem can only make it worse as time passes.
8. You have no idea about all the accounts on your credit report. You are unsure about which debts are paid – or even how much you owe to creditors.
9. You have thought about bankruptcy or were considering filing with a bankruptcy attorney. When you have had these thoughts, chances are that meeting with a bankruptcy attorney is the next logical step.
If you said yes to any of the above signs, schedule a consultation with an experienced bankruptcy attorney who can help you decide if bankruptcy is right for you, and if so, what type of bankruptcy best suites your individual case.
