How to Spot the Early Signs of Possibly Needing to File Bankruptcy

No one ever intends to go bankrupt. But whether you’re facing mounting medical expenses, the loss of your job, or a bad credit card habit, your debt can accumulate much faster than you think, making bankruptcy a viable option to resolve your financial issues.

While our Brevard County bankruptcy lawyers at The Buchalter Law Group can help you begin the filing process, we know that bankruptcy isn’t a decision that should be taken lightly. If you’re already struggling to make crucial payments, it could be a sign that bankruptcy is the answer to your financial hardships.

Here are some of the signs that filing for bankruptcy could be in your best financial interest:

  • You’re propping up your bills with credit cards. You shouldn’t have to pay for basic necessities like rent, electricity, and internet with your credit cards. If your current income doesn’t cover your basic costs of living, you may need to think about finding a new job, or cutting expenses with more affordable housing.
  • You frequently take out high cost or “payday” loans to cover costs. If you’re living from paycheck to paycheck, one emergency can ruin your finances. You may turn to so-called “payday” loans that offer immediate cash, but require you to pay exorbitant fees and interest. When left unpaid, these loans can be devastating to your finances.
  • You don’t even qualify for debt management. In most cases, a qualified credit counselor can help you select a debt management plan to reduce monthly payments and lower your interest rates. However, if you’ve gone to a credit counselor and they offer you bankruptcy protection instead, it’s possible that you may be closer to bankruptcy than you realize.
  • You’re always borrowing money from friends and family. Even when you’re living on credit, you’ll still need to pay some expenses in hard cash. For many people, friends and family can offer small advances – but if you’re consistently forced to ask them for help, it could be a sign of deep financial trouble.
  • Every new loan seems to hurt rather than help. Have you already taken out multiple mortgages, personal loans, and bonds to try and consolidate your debts, only to find that your debt spikes up again? You may need to take immediate action to prevent yourself from falling into a deeper financial hole.
  • You’re getting threatening letters and calls from collectors. Once you start missing payments on your credit cards, debt collectors may start to harass you frequently. Whether you’re receiving strongly-worded letters or visits to your home and workplace, debt collector harassment is serious, and means that you could need the financial relief provided by filing bankruptcy.
  • Your credit score has dropped dramatically. Missing payments on mortgages, loans, and credit cards will significantly drop your credit score. If your score has dropped more than 100 points in the last year, it’s a sure sign of trouble.

If you recognize yourself in any of the signs above, all is not lost. When you work with our skilled bankruptcy attorneys, we can take a deep-dive into your finances and see if a more comprehensive debt solution is available to you. Although your circumstances may seem dire, bankruptcy is rarely your only option – especially if you take action to solve the problem early on.

Contact The Buchalter Law Group at (321) 320-6088 today for more information!

Related Posts
  • Common Types of Bankruptcy Read More
  • Subchapter V Bankruptcy: What It Is & How It Works Read More
  • Is Your Bankruptcy Case at Risk of Dismissal? Read More