Whether you’re missing payments or you're unable to qualify for a debt management plan, you could be facing bankruptcy. These are just a few of the signs to look out for. Read on, and ask yourself the following questions to see if bankruptcy might be right for you.
Warning Signs You're Going Bankrupt
1. Are Debt Collectors Calling You?
If you often get demanding calls from debt collectors, it's time to do something about it. You’ll receive calls when your debts are up to 90 days past due. You could also get a notice that a past-due account is in collections.
2. Are You Missing Loan Obligations?
If you can’t keep up with your current bills, such as a student loan, auto loan, or medical bills, you might have a problem.
People who deal with financial hardship can make tiny payments on their credit cards. If you can’t afford to do this, you might need some help.
3. Do You Qualify for a Debt Management Program?
If you struggle with debt, some plans help you manage your finances. Debt management programs help folks who want to lower their credit-card interest rates.
This doesn't work for everyone, though. Some experts examine people's budgets and decide they can't enter the program. If this happens, those folks face bankruptcy.
4. Do You Have a Home Equity Loan?
If you have massive credit card bills, you may have considered getting a home equity loan. If you did this, but your credit card bills have risen again, you’ll have a lot of debt to repay.
It’s not advisable to get a home equity line of credit to pay off credit card debt. You’ve taken a secured debt to pay off unsecured debt, your credit card.
If you can’t pay your home equity loan, you could lose your home. This is a scenario where you might need to declare bankruptcy.
5. Are Your Credit Cards Maxed Out?
If you overspend with your credit cards, you could risk other financial problems. If you’ve reached your spending limit, your bank might not increase your credit line. This keeps you from getting approved for new lines of credit.
In this situation, you may end up using your credit cards to cover everyday expenses. This could lead you to declare bankruptcy to remain afloat.
6. Have You Been Unable to Recover from a Setback?
If you’ve faced divorce or massive medical bills, you might have difficulty with finances. These are common reasons why some Americans file for bankruptcy protection. Check out our guide on how to find the best bankruptcy lawyer.
Contact The Law Office of Marilyn D. Garner
We hope you found this article on going bankrupt insightful. Take note of the different scenarios that could lead you to declare bankruptcy.
Want to learn more? Call the Law Office of Marilyn D. Garner NOW at 817-381-9292 for your free bankruptcy consultation today!