You know you’re in financial trouble. You’ve thought about talking to a Minneapolis bankruptcy attorney but are things really that bad? Is now the time to file for bankruptcy? Here are 10 indicators that could mean the time is right to take a closer look at bankruptcy protection.
1. Your expenses exceed your income. If your money is gone before the bills are paid and the next payday arrives, you’re probably in trouble. If you routinely run out of cash and end up putting everyday expenses on your credit card, or getting cash advances, you need to think seriously about your situation.
2. You cannot make more than the minimum payment on your credit cards. Making minimum payments gets you no closer to eliminating your debt. You’ll never pay the card off that way.
3. If you pay one credit card with a cash advance from another card. This is a clear sign that your financial status is shaky.
4. Are creditors harassing you? If you are afraid to answer the phone or check your mail because you know there’s going to be harassing messages from bill collectors, you are probably in financial trouble. It is time to look for a solution to the problem.
5. Do you and your spouse argue about money more often? Financial problems are one of the leading causes of divorce. Frequent fights about where the money has gone, who spent what and bills that must be paid are obvious indicators that your financial situation is taking a toll on your happiness.
6. Your car is worth less than you owe on it. When you are in this situation it is said that you have an upside down car loan. It is very difficult to acquire another car under those circumstances and you should talk to a Minneapolis bankruptcy lawyer about how you can best remedy the situation.
7. Are your credit cards maxed out? This becomes a real problem if you have been relying on your credit cards to get you through the month. Where will you turn when you have reached the limit on all your cards?
8. Do you fear surprise expenses? Because you are never able to save any money, there is no way to pay for unexpected expenses like car repairs or broken appliances. Whether your inability to save is caused by unwise money management, an overabundance of debt or you just don’t make enough money, you are walking a precarious line.
9. Have you been turned down for a loan recently? If so, it could be because your debt to income ratio is getting out of balance. Check your credit score and see where you stand in the eyes of lenders.
10. Do thoughts of bankruptcy enter your mind more often? That is the number one sign that you should consult an attorney familiar with Minnesota bankruptcy law to discuss your options.
Many attorneys offer a free consultation. If you’re worried about your financial situation, find out if bankruptcy could be a viable solution for you