The struggle to find financial stability after particularly large expenditures or damaging losses can leave even the best of us feeling winded. Day after day of digging to try to get out of debt can be physically and emotionally exhausting, and despite your greatest efforts, you might not be any closer to relief. In fact, you could be nearing bankruptcy and not even know it.
But not to panic – bankruptcy isn’t the fiscal “death sentence” most people tend to see it as. When you file for bankruptcy correctly, it can serve to permanently eliminate your debts and shut down aggressive creditors in their tracks. Best of all, you can restore your credit and, in some situations, keep your valuable assets, such as your home or business. Success all depends on proper preparation, so it is important you learn to recognize some of the most obvious signs of an impending bankruptcy in your own life.
Be Aware of the Five Red Flags
1.) Interest only: Quite possibly the biggest warning sign that you should consider bankruptcy and fast, if you are only able to pay interest on credit card debts, you might not be able to handle it in the long run.
2.) Job loss: If you have recently lost your job or took a major salary reduction, you have to consider that bills that were difficult to pay before are likely impossible to pay now.
3.) Vehicle repossession: If the repo man is at your door for your car, the bank might come by next for your home. It is better to take initiative as soon as possible and plan for Chapter 7 or 13 bankruptcy.
4.) Medical costs: Even with medical insurance, hospital, emergency room, and prescription costs have a tendency to add up and drown people in debt. When your medical expenses reach into the thousands, bankruptcy might be able to clear it all up faster.
5.) Multiple mortgages: Many people put a mortgage on their home to try to find financial relief, and often it can work. But when you are seeking a second or third mortgage, it could signify the beginning of an uphill battle.
It Is Risky to Go Alone – Take Our Help with You!
Filing for bankruptcy is not a straightforward procedure. Even though it could potentially grant you permanent financial relief, your claims could be denied without thorough preparation. In order to ensure you are taking all the rights steps and overlooking nothing, contact a professional Fresno bankruptcy lawyer from Arnold Law Group, APC today. Our attorneys have more than 30 years of combined legal experience handling bankruptcy cases for the people of Central California.