5 Warning Signs of Bankruptcy

As we’ve written about before, bankruptcy is not a terrible thing. It is not the end of the world. It doesn’t even mean that you will lose your home. However, it is still an involved process and people should be aware when it is coming. When bankruptcy is on the horizon, there are many preparations you may want to undertake sooner rather than later.

If you are in the middle of a tough financial time, it is important to know the difference between just being late on a bill and bankruptcy looming right around the corner. Here are 5 of the warning signs of bankruptcy that you should know and recognize when they happen:

Piling On Missed Payments

Paying one bill late does not mean that you are about to file for Chapter 7 or Chapter 13 Bankruptcy. Consistently missing payments entirely, however, is a sure sign. If you have missed several monthly payments in a row, chances are that you are headed for either bankruptcy or getting the lights turned off.

Using Credit Cards For Essentials

There’s nothing wrong with using a credit card to pay for gas or groceries when you know that you can pay the bill off at the end of the month. In fact, that’s one of the best ways to build up credit! However, when you are paying for essentials with your credit card and cannot pay the bill, you’re in trouble. This is true whether you’re charging the credit card for eggs and milk or full-on rent.

Constant Debt Collection Calls

One of the worst experiences anyone can have in life is speaking to a debt collector on the phone. Are you stuck ducking and blocking calls constantly? That’s a bad sign.

Being Denied For Debt Management

There are a lot of programs that can help manage, reduce, or consolidate debt. These are varying good options for those trying to manage a significant amount of debt. When you are being denied for debt management options because of your income status or high amount of debt, it might mean that bankruptcy is one of your only remaining options.

Delaying Essential Services

Are you telling yourself that the oil change is going to have to wait another month when your car is already 3,000 miles over? Are you avoiding visits to the doctor or dentist until your funds are better? Are you just living with a plumbing leak or house decay? When your financial priorities have gotten to the point where essentials are being put off, it’s time to take a long and hard look at your situation.

If You Need Help

Bankruptcy is often portrayed as a failure, but for many it is a new beginning. It can give you a fresh start to take control of your finances in the way that you want, without being run down by debt. If you want to discuss your options regarding bankruptcy, contact Velazquez Consumer Law, LLC today! We provide solutions and shield you from surprises!

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Velazquez Consumer Law

Central to our firm is the empathetic and compassionate service we give each client that allows us to fully understand your situation and goals. Above all, our responsive and hands-on approach to your legal issues yields actual results.

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