If you’re struggling to make ends meet, or there’s too much month left at the end of the money, then perhaps you should think about filing for bankruptcy.
Here’s what we think you should look out for.
1. There’s a reason that you’re struggling financially
You might have lost your job and can’t find another one, or someone in your family has a medical condition that the insurance won’t cover.
You might have got divorced and still have the same level of outgoings with just one income. You might have had a sudden unexpected costly repair to fund, which means that you can’t afford to pay your rent.
There’s usually a reason for being in debt, and it’s rarely things like maxing out credit cards on holidays, or spending money on a new car or designer clothes.
Contrary to popular opinion, there are many reasons why people file for bankruptcy, and buying luxury items or making frivilous purchases on credit cards are way down the list.
2. You’ve spent your savings
You’ve already spent your savings on bills or household expenses, rather than to put your children through college, or for your future.
3. You’re using your credit cards more
You’re using your credit card for everyday items such as gas and groceries.
Instead of using cash or your debit card, almost every purchase is going on your credit card.
4. Using loans to pay off bills
You’re borrowing money from friends or relatives, or perhaps you’ve taken out a loan just to pay off other bills.
5. You don’t open your mail
If you’ve stopped opening your mail, because you know it’s another bill, or a letter from a creditor, then perhaps you need help.
Your bills are escalating out of control, and you’re wondering how you’re going to pay them, or which ones you can afford to miss for a month.
7. You’re being pursued by creditors
You don’t answer your home phone, work phone or cellphone, because you’re anxious about who’s calling, what they want, and what they’re threatening you with. This is a sign that you might want to consider bankruptcy.
An experienced bankruptcy lawyer will be able to stop your creditors from phoning you.
8. You’re behind on payments such as mortgage or rent
You’re behind on your car, rent or mortgage payments, because you can’t afford to pay all your bills.
You might think that your lender will be more lenient with you because you’ve been with them a while, or that you have a valid reason for not paying on time.
The truth is that you probably won’t get any help from your lender, and will need to think about alternatives, such as filing for bankruptcy.
9. You’re thinking about a consolidation loan
Getting help from a debt management company, or taking out a debt consolidation loan might seem like a good idea.
However, in our experience, the truth is different. We’ve seen debt management companies that take a large portion of your payment as their fee, and pay little back your creditors. This can mean that paying off your debts will take a long time.
That’s one of the reasons we think hiring a bankruptcy lawyer is better than a hiring a debt consolidator.
10. You’re not sleeping because you’re worried about money
Perhaps you’re not sleeping well due to money problems, and as you’re anxious about every penny you spend.
How will you tell your children that there’ll be no Christmas or birthday presents this year?
Why not do something about it now?
Filing for bankruptcy might be your best option.
If you recognize any of these signs, then why not see how an experienced Minnesota bankruptcy attorney can help you?