Signs of an Impending Bankruptcy
When it comes to declaring bankruptcy, it’s typically not the immediate financial behaviors that land you in hot water – rather, it’s been months or years of poor money judgments that planted the seeds of an impending bankruptcy. But for some individuals, it doesn’t matter how obvious it’s become that they need to declare bankruptcy – they refuse to give up on chipping away at that looming mountain of debt.
So how do you know the biggest signs of an impending bankruptcy?
Read on to find out:
You’re continually surprised by your bank account balance – and not in a good way. If you often find that your bank account balance is lower than what you thought it was going to be, it’s clear that you’re spending money on things other than your bills. While this behavior alone isn’t enough to necessitate an emergency call to a bankruptcy lawyer, but if your credit card is sky-high or your interest rate is through the roof, it’s a sign that your lenders think you’re about to default. And if you’re lenders think you’re about to do the deed, it might be time to buckle down and seek professional advice.
If you have little to no discretionary income, then it might be time to make an appointment with your local bankruptcy attorney. What exactly do we mean by discretionary income? Well, if you find that you’re often spending your paycheck before you even receive it, or that you literally have no money left over once all your bills are paid, it’s safe to say that you’re on the brink of a major financial disaster. Either get a second job to get more money coming into your home, or declare bankruptcy to start building up a financial nest egg. Speaking of which…
Do you have little to no savings to speak of? If so, then it’s probably time to declare bankruptcy. Having maxed out credit cards and no savings in the bank account means that you’re just a car accident or a big medical bill away from drowning under a mountain of debt
If you keep having to borrow money from one lender just to pay off another, it may be time to consider declaring bankruptcy. This can be an endless cycle of debt that can only be broken by declaring bankruptcy, as it gives you the chance to start over with a fresh financial slate.
Finally, if you’ve resorted to taking out a payday loan of any kind, take a look down the road. Payday loans are notoriously hard to pay back, as they keep you in a cycle of debt. If you meet any of these signs of an impending bankruptcy, don’t wait – contact a local bankruptcy attorney as soon as possible.