When You Should Consider Bankruptcy

There is no question that most Americans want to avoid filing bankruptcy at all cost. Although "the B-word" has lost most of its stigma, and some consider filing it casually (some doing it more than once), the vast majority will do anything else first (and some of those options can have some long term consequences). The irony of this is that bankruptcy is often the best thing for them. Therefore, I want to offer some warning signs to consider, so that you do not wait until it is too late. If any of this sounds like you, call a bankruptcy lawyer!

1. Are you living within your means? This may seem like a dumb question, but think about it. Do you have the income every month to cover your basic economic needs, like food, clothing, and shelter? Are you spending money you don't have on non-essentials, thus creating payments on credit card debts that are interfering with your ability to buy groceries? 95% of Americans do not have a household budget. Do you? If not, download this form and fill it out. Take the total expenses and deduct it from your net monthly income. If you come up with a negative number (or money left over insufficient to make the minimum payments on your credit cards), you are living beyond your means and need to curtail spending as soon as possible. Tighten your belt to produce the money needed to pay down the debt, not just put it off for another month. If you can't do that, call a bankruptcy lawyer!
2. Are you taking money from other sources to shore up your budget? Do you use a debit card, but figure that overdraft protection will catch a shortfall? This is nothing more than taking out another loan and is another way of putting off the inevitable. The same is true of borrowing against your pension. This is always a bad idea and jeopardizes your future. Don't do it; call a bankruptcy lawyer.
3. Have you stopped answering the phone or opening the mail? This is another symptom of people in financial difficulty, because it means the bills aren't being paid, and you are hiding from your debt. This can't go on forever and is, in essence, an attempt to hide from the problem. Call a bankruptcy lawyer.

In essence, don't wait until the water is up to your chin to learn how to swim. Seeing these signs early on may allow you to avoid bankruptcy, but ignoring them may make it an inevitability. Call my office today for a free consultation!

Looking for more information about bankruptcy? Get the answers to the most frequently asked questions by downloading my free book, Top Questions People Ask About Filing Bankruptcy in New Jersey. It will give you the answers you need all in one place. Then call me at 888-857-8418 or contact me through this site for an appointment for a free consultation to discuss your case.