It should be pretty obvious if your financial health is sick enough to warrant filing bankruptcy, but sometimes a multitude of factors just end up occurring at the same time which can easily cloud what should be a clear situation. Here’s a quick list of red flags which signal a path towards bankruptcy:
1. Creditors are calling you consistently – If you are a chronic late payer or non-payer, you will probably receive calls from your creditors, or their hired hands, wanting to know what the deal is with your debt. These calls can range from professional to intimidating. Depending on the amount you owe and the lateness of the payment, the creditor might be willing to strike a deal with you regarding a plan to pay. Be wary and consult an attorney before agreeing to any deal.
2. You have rising credit card debt – If you find your credit card statement and bill growing each month, despite your sincere effort to pay it down, you’re headed for trouble. Making minimum payments and realistically expecting to payoff your credit card balances is silly. The way interest is calculated these days and the associated fees with late or missing payments virtually eliminate any value to making minimum payments on this debt. Also, if you’re using your credit cards on purchases for everyday items in place of cash, be careful. Balances can add up very quickly and if not managed proactively, they can become unmanageable before you know it.
3. You do not have much of a nest-egg in the bank – If you are living week to week or month to month, chances are you have not had the opportunity or luxury of socking away a few bucks every time you get paid. Many folks live entire lives like this, always vulnerable to happenstance when things might go wrong. One such negative happenstance can mean financial disaster. If you find yourself in this position, you could be on the road to bankruptcy. Talking to an attorney might be a good way to make a move forward.
If your financial health has been consistently challenged despite your best efforts to find a cure, you might be on the road to bankruptcy. Be aware of your situation, don’t ignore it. Speaking with our Concord bankruptcy attorney can be the first step towards solving the problem.