Debt can sneak up on some people, slowly, month-after-month. Some individuals may not realize just how bad it is, until it is too late to take action and “turn the ship around,” so to speak. Here are several warning signs that you may be headed toward a financial situation that may end in bankruptcy.
Behind on Your Bills
Millions of Americans file for bankruptcy every year and one of the first signs they notice is the fact that they begin to fall behind in paying bills. If you can no longer pay more than the minimum amount on your credit cards, or perhaps you are a few days late on your mortgage or utility bills every month, then this is a problem.
We all have fallen behind on occasion, but be sure it does not become a regular pattern that can quickly spiral out of control. Keep track of your regular bills and plan accordingly if you have the means to do so. If credit cards are tripping you up, try consolidating and reducing the debt that way.
This is one step beyond falling behind on paying your bills. If creditors have sent your delinquent bills to a collection agency, you will begin to get harassing phone calls, emails, and certified letters detailing what you owe. If bankruptcy is your chosen course of action, you can get an automatic stay that will immediately stop all credit or collection calls until the case is handled.
Choosing Between Necessary Items
Many times, we hear about how things got bad enough, financially speaking, that families need to choose between medications or food. This choice can make some people choose to use credit cards to pay for necessary items like food, utilities, or rent. This is a slippery slope that can lead to even more dangerous choices. Be aware of these red flags.
You Have Done the Math
A huge red flag that makes many debtors decide that bankruptcy might be the best solution is when they begin to do the math. By this I mean they figure out that it would take many years to pay off debt according to their current earnings. If the math doesn’t seem to be working in your favor, or the pay off time seems insurmountable, bankruptcy may be your best option.
If you have begun to see the red flags that could be indicating financial hardship, then call our office to discuss your options and how bankruptcy may help alleviate your stress. Call the Law Office of Barry R. Levine today by phone at 978-922-8440, or visit our website at http://levinelawoffice.com.