Filing for bankruptcy is no joke. While it can alleviate your debt and get creditors off your back, it also deeply impacts your credit for up to a decade. But deciding not to file for bankruptcy can cause more debt to pile up and could potentially put you in an even worse situation financially. Here are some signs to look out for that could indicate whether or not your should seek the services of a bankruptcy attorney.
Your minimum payments are too much to handle
If your monthly minimums on credit cards and loans are proving too much for you income, you are definitely in a severe financial situation that should not be ignored.
You spend more than you earn on a regular basis
If you find that you’re incurring debt every month with no end in sight and you’ve reduced your expenditures to essentials after making a thorough and honest analysis of your spending habits, you may be a candidate for bankruptcy. Combined with the above, you are digging yourself deeper into debt every month. Debts gain interest, making the amount of money you owe more expensive every day. In the financial industry, this is called “financial suicide.”
You skip some bills every month
If you’re unable to pay all of your bills every month, you may make the same mistake as many others: skipping bills and putting off your debts.
You are not making enough money
This isn’t about living your ideal lifestyle, but rather you are not making enough money to cover your expenses and contribute to a savings account or emergency fund. This gives you no buffer for the unpredictable expenses of life: car repairs, medical expenses, or other emergencies.
You receive constant phone calls from creditors and collection agencies
Most creditors will turn your account over to a collection agency once they determine you are delaying payment. Having multiple collections agencies contacting you on a regular basis is a sure sign that you are in dire financial straits.
If any of these signs are true for you, it may be time to look into hiring a Las Vegas chapter 13 bankruptcy lawyer. Contact DeLuca and Associates today to set up a consultation.
Main photo by Carissa Rogers