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Some people choose to take a situation for granted until it’s too late. This statement proves true for those who have experienced bankruptcy. Many of them may have noticed the signs that they may be heading for bankruptcy but choose to completely ignore. They became too complacent that they can still get out of debt on time before they are forced to declare bankruptcy. Sadly, it is too often that bankruptcy gets to them first before they have had time to do something.

Consider these 7 signs that you could be heading towards bankruptcy and may need to speak with a bankruptcy attorney.

Your expenses exceed you monthly income.

When was the last time you drew up a budget based on your current income.  DebtCrisisOne big pitfall people fall into is they get laid of and / or change jobs and unfortunately their take home pay isn’t the same as it once was.  Or they have a baby and even though they think they have adjusted their spending to cover their new addition to the family, they haven’t.  And each month they find themselves depending more and more on their credit cards.

Beware of the “Little” Purchases

I once had a client carry a small notebook in her purse and write down everything she spent.  It was much like a food diary people trying to lose weight keep.  I had her write down EVERYTHING.  From buying a pack of gum to dinner out.  When she came back at the end of the month I could see by looking thru her notebook that by day 16 she was really starting to see a pattern in her spending.  Her daily “incidental” purchase were way down by the end of the month and she admitted that she had somehow found $240 in her budget by cutting back.

Your credit cards are often times maxed out.

If you are like a lot of consumers you pay for most purchases with your credit card. Whether you are trying to accumulate a lot of point, or you just enjoy the ease of using your credit card. Be aware that credit card debt is the leading cause of being forced to file for bankruptcy.

You are not sure where all your money goes by the end of the month

Do you know how much exactly you owe each of your creditors? If you have lost track of the amount of your debts, that’s a warning sign that you may have too much outstanding balances in your accounts.

past due billsYou are in the habit of paying debts every OTHER month

Having worked in consumer financing for several years, many of my customers would tell me if a debt isn’t in a pink envelope its not due.  Well its actually due each month and the pink envelope is a warning sign that at least 3 months have passed since your last payment.

You would be surprised by how many people pay bills every OTHER month.  That way they always are just 30 days behind.  Regardless, they are still behind and heading to a bankruptcy court if they don’t get their spending under control or find a way to make more money each month.

You never check credit report.

You already know that your habit of late payments has probaly trashed your credit score, so you don’t bother to  monitor your credit report.

You’re arguing about money matters.

Do you usually find yourself arguing with your family about money? If yes, that should be a warning sign that you need financial help. Don’t hesitate to seek advice from a reliable credit counseling agency before it’s too late.

Creditors and debt collectors are calling you.aggressive debt collector

If creditors and debt collectors are sending you debt collection notices and calling you incessantly, then obviously you are experiencing a debt problem. Speaking with bankruptcy attorney doesn’t mean that you need to file for bankruptcy right away.  Many of them work with consumer counseling companies and they maybe able to help you get your debt under control enough to avoid calling the bankruptcy attorney.


Updated 7/1/2016 by L. Roberts

By Elizabeth Roberts

Liz Roberts is a Sr. Credit Analyst with Horizon Funding Group Inc. She has been in the business credit industry for 20 years focusing on bad credit business owners and start up businesses. Her background is in consumer credit and collections prior to joining the Horizon team as a credit analyst and writer.

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