Signs of Impending Bankruptcy
Prevention is always better than cure, especially for financial woes. But you can only prevent something that you can recognize. Unfortunately, financial problems have a way of sneaking up on you and all of a sudden, you find yourself mired in ever-increasing debt. You did not plan for it to happen, it just did. If you have not yet come into the stage of suffocating debt, count yourself fortunate. But do not take it for granted. The problem with debt is that it is difficult to realize its implications until it grows to a level where it severely affects you. By then it might be too late.
So to be on the safe side, always check yourself and your debt level to see how close you might be to bankruptcy. Here are some tell-tale symptoms that may serve as a warning to you:
1. You are almost always paying your bills late.
2. You are always paying the bills that you are being ‘chased’ to pay by the creditors and you avoid paying those for which the creditor does not hound you.
3. At the end of each month, you do not have any or only very little savings
4. All your credit or charge cards have reached (or are very close to reaching) their credit limit.
5. You pay only the minimum charge due for your credit cards and still often get charged late fees.
6. You pay for basic necessities and small purchases like groceries and utilities with your credit card. Even then, within the last 3 months you have had to pay reconnection fees because your utilities have been cut off.
7. Your credit card is being charged high interest because of your bad payment record.
8. Your checking account is overdrawn and you cannot keep up with the interest payments.
9. You are at least a month behind in your home or car loan installments or both.
10. You have applied for another loan recently.
11. Your salary can barely cover your regular monthly expenses and you do not have any savings to draw from should an unexpected major expense becomes needed.
12. You have borrowed money the last 3 months to pay for basic necessities.
13. You pay for a loan using money from another loan.
14. You are well-known to your creditors.
15. You don’t know exactly how much your debt is, just that it’s a lot.
16. You always run out of money before your next paycheck.
17. The bank wants to foreclose on your house.
18. Your car has been repossessed.
This is not an exhaustive list but you get the idea. The more of these statements are true of you, the more dangerously close you are to bankruptcy.
But there is a way to make bankruptcy your ally. The law has provided the Bankruptcy Code that is designed to discharge or restructure your debts such that they are more manageable. These are accomplished through Chapter 7 and 13 of the Bankruptcy Code respectively.
Therefore, especially if many of the statements above apply to you, please call me at my number (813) 200 4133 for a free non-obligatory consultation and I will help you make bankruptcy your ally instead of your foe.