Brenner Spiller & Archer

Are You Heading Toward Bankruptcy?

Although the economy has largely rebounded since the housing bubble burst and set off the recent recession, these are still uncertain times for many families who are struggling with pressing financial obligations and massive debts. If you aren’t careful, you could find yourself facing the possibility of bankruptcy.

While bankruptcy can be a good option for people who are looking to clear their debts and get a fresh financial start, there may be other ways for you to overcome your financial woes. Whether it’s reorganizing your debts and setting up a payment plan through Chapter 13 bankruptcy, completely discharging your debts through Chapter 7 bankruptcy, or availing yourself of another debt management strategy, it is important for you to take action now – before it’s too late. Your first step should be to speak with a qualified debt relief attorney who can look over your finances and advise you about your available options.

Do not wait for your bills to pile up and your debts to become overwhelming before you start taking action. Your financial situation may not be dire right now, but it could soon become dire and limit your options for getting back on the right financial path.

So how will you know if you are headed for financial disaster? Here are a few of the warning signs of a pending bankruptcy:

  1. You are falling behind on monthly bills. You may not think that the late fees on your monthly bills are a big deal, but they can quickly add up. More importantly, they are a sign that your current finances simply aren’t enough to cover your expenses. And that difficult financial situation is only going to get worse if you don’t start taking steps now to reduce your debt obligations. If you can’t keep up with your mortgage, student loans, or credit card debts, you may need the assistance of a qualified debt management attorney.
  2. Debt collectors are calling you. Debt collectors can be relentless when it comes to hounding debtors. First things first: you have legal rights, so let an experienced attorney handle your situation and ensure that you are not being harassed by your creditors. Secondly, you need to deal with your debt obligations before they end up on your credit report.
  3. You’re charging everything on credit cards. The nice thing about credit cards is that they make it very easy to pay for stuff that you need. The problem is that the bill eventually comes due – and there can be exorbitant interest rates and other charges accompanying the bill. If you find yourself charging too many expenses on a credit card and deferring payment until later, it could be a sign that you are headed toward bankruptcy.
  4. Your bank account has a negative balance. This is a major red flag that bankruptcy could be on the horizon. Without sufficient savings, you will be exposed to financial ruin if disaster strikes. Imagine losing your job, or suffering a serious injury, and then not having any money in your savings.
  5. You’re taking out loans on your retirement account. Your retirement savings are meant to provide you with a nest egg for your Golden Years. You work hard now so that you can retire when the time comes. If you raid your retirement account and withdraw the money early, it could create bigger problems down the road.

If you are dealing with serious financial problems, a qualified bankruptcy lawyer may be able to help you. The experienced bankruptcy and debt management attorneys at Brenner Spiller & Archer are prepared to assist you. Contact us today to schedule a free consultation.