Many Americans experiencing financial trouble don't realize until the last minute that they should have filed bankruptcy months, if not years earlier.
Here are the signs that you may need to file bankruptcy:
- You often write checks against your bank account when you know the money isn't there. Sometimes debtors write checks hoping that the creditor won't cash it until their paycheck arrives in a "few days." But using this tactic may be sign that bankruptcy is necessary and it may even put you deeper into debt.
- You only pay the minimum on your credit cards and sometimes you may even use one credit card to pay another. When you do this it takes you longer to repay your loan and like any juggling game, it's only a matter of time before the balls come falling down. Bankruptcy may be needed to give you some relief from creditors by allowing you repay your debts overtime or discharge them completely.
- Creditors are constantly calling you with nasty threats. Creditors may even have filed a lawsuit against you. If so, bankruptcy can put a stop to creditor phone calls and even freeze lawsuits, wage garnishments and other nasty collection actions.
- You're using payday loans just to survive the time between paychecks. This is a sign that your expenses exceed your income. Bankruptcy can discharge unsecured debt freeing up more cash so you can avoid costly and damaging payday loans.
If you find yourself doing any of the above to survive financially, you may need to speak with a bankruptcy attorney.