Signs You May Need Bankruptcy

Helping Clients Achieve Financial Freedom

Absent an objective accounting like a bankruptcy lawyer would do, here are some signs that maybe you should look closer at whether you are insolvent and need a bankruptcy.

• You are raiding your retirement accounts such as 401Ks and IRAs.
• You are only paying the minimum payment on your credit cards.
• You are behind on rent or mortgage payments.
• You are getting a lot of calls from debt collectors.
• You are now taking urgent loans from your family or friends to bail yourself out.
• You are going to legal loan sharks, aka “pay day lenders” like Cash Call.
• Your credit has deteriorated. Signs are that you need a co-signer to get a loan.
• You try and hide your credit card statement from your spouse.
• You feel like your juggling and you often have anxiety about money.
• You are denied additional credit when you apply for it.
• You are using one credit card to pay another.
• You have high credit card balances and you only use credit cards for your expenses rather than cash or ATM because you have to do that.
• You are no longer offered “teaser” rates to pay off your higher interest accounts.
• Your paycheck cannot come fast enough.
• You don’t know how much you owe, but you know it is a lot.
• Your credit card minimum payment is 15% or more of your net income.
• You have been sued by a creditor or for a matter that you cannot afford to pay.
• Your car or another vehicle has been repossessed.