Recognizing The Signs Of Impending Financial Distress

Get Out Of Debt With A Crown Point Bankruptcy Lawyer Before It Is Too Late!

Most of us have been in a position at some point or another where our money does not seem to stretch far enough. We always seem to spend up to our income level and sometimes, a bit beyond it. An occasional splurge is not likely to put anyone on the edge of financial trouble, but a pattern of such behavior can chip away at our financial health over time. What happens when we start heading down this path? At what point do we need to investigate whether bankruptcy is a sensible solution to get a fresh start and regain control over our finances?

Times When Filing For Bankruptcy May Be The Best Solution

Owing money is not always the only reason at the root of a decision to file for bankruptcy. However, for many debtors, it is a major factor. Signs that may indicate that filing for bankruptcy is the best option include following situations:

• Credit cards are being used to pay for everyday living expenses like groceries or gas. When debtors are forced to spend their entire paycheck on debt payments, like rent, car payments, loans, and credit card bills, the daily costs of living are often shifted to credit cards;
• “Robbing Peter to pay Paul.” This refers to paying one credit card with another credit card. When it happens once, it may not be that big of a deal. However, when it becomes a pattern, it will lead to increased debt, taking the debtor even farther away from being able to get his or her financial situation back under control;
• Missing payments can be disastrous. When a debtor fails to make the minimum payment on a credit card, the creditors will often raise its interest rate to the point where it is nearly impossible to get back on track. Once interest rates reach these higher levels, minimum payments are often increased as well, and any payment that is made is going toward the interest only and the actual balance of your debt is certain to rise;
• Working your life away. Taking multiple jobs just to try to keep up is not a good long-term plan if it is getting one nowhere except to a higher level of frustration;
• When creditors take action to garnish a debtor’s’ wages, it is often unlikely that the indebted individual will be able to turn things around on their own.  Trying to meet financial obligations on only a portion of one’s regular income is certain to send a debtor further into a downward financial spiral;
• When stress from trying to keep up with one’s debt is affecting his or her life quality, the inability to focus can lead to unemployment, a disastrous result that will lead to an even faster downhill slide into inescapable debt;
• Withdrawing hard-earned money from IRAs or other retirement accounts may offer a temporary reprieve. However, the long-term repercussions can spell disaster for you and loved ones in the future; and
• Increased debt levels after trying everything possible to make a change in one’s financial health may be the last straw. At this point, bankruptcy may seem like the only viable option.

Get The Best Advice from a Crown Point Bankruptcy Attorney Today

If you have found yourself in a seemingly dire financial situation, you may want to explore whether bankruptcy is the right way for you to proceed with the guidance of an experienced bankruptcy attorney. Contact the Whitten & Whitten for reliable guidance about whether bankruptcy is right for you. Contact us online or call us at 219-756-0555 for your free consultation.