Be Sure To Spot These 3 Bankruptcy Warning Signs
Posted on: 24 March 2021
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At some point, you may have already found yourself in a deep financial crisis. You might find it difficult to pay off your debt or deal with private debt collection agents. It often leaves you drained, both mentally and emotionally.
Filing for bankruptcy through your trusted bankruptcy attorney can be a huge relief for you. Unfortunately, not many people are aware of the benefit of filing early. They fail to identify the early signs that it's time to file for bankruptcy.
They end up digging themselves into a much deeper hole trying to pay off debt. Take a look at these warning signs that show when it's time to consult your bankruptcy attorney.
1. You're Constantly Missing Payments
This is perhaps the most obvious sign of a major financial crisis. You find that your bills pile up, and you're unable to pay them off. Ultimately, you discover that you're way over your head in debt. Paying your monthly car loan and making mortgage payments becomes a nightmare.
Additionally, your credit card bills accumulate quicker than you can clear them out. If you find yourself in such a situation, a reputable bankruptcy attorney should be able to advise on how to kickstart your bankruptcy filing process.
2. You're Spending More Than You Make
When you begin spending more money than you have, then it automatically becomes a problem for you. That is initially what pushes you to bankruptcy. Maybe you've had a medical emergency that requires you to pay a lot of money since you don't have medical insurance. Or you're making out regular payments for divorce proceedings.
Additionally, losing your job can also push you into a financial crisis, leaving you to depend on the little cash you've managed to save. At this point, your bankruptcy attorney might advise that you first take the time to draft up a record of all your monthly expenses. If they are way more than the money you have each month, then you're already on your way to bankruptcy.
3. A Debt Collection Agency Has Already Made Contact
Sometimes, you might find yourself in a bit of trouble after legal action is taken against you by a debt collector. You could also have already received a notification that you've been sued for defaulted payments.
It could be that you're behind on multiple debt payments, and you feel that it's impossible to stay on top of things. At this point, your only good option would be to contact a reputable bankruptcy law firm to give you some relief from all of it.
Contact a bankruptcy law attorney today for more information.