Many people I consult with are not even sure that bankruptcy is for them when they come into my office. They just want to know what solutions are out there to help them get back onto a good financial track. This is always a good approach, as bankruptcy is not the right solution for everybody.

What Are the Signs That Bankruptcy is the Solution?

So the question becomes, is bankruptcy for you? Well, in my experience, there are certain signs to look for in your life.

  1. You keep missing payment deadlines on debt. Paying your monthly bills, especially the credit cards, can seem like playing a game of Whack-A-Mole at a carnival. If this has become so frenetic that you are missing deadlines, that is not good. It puts you at a higher interest rate on your credit cards and can lower your credit score. It is also a sign that expenses are exceeding income.
  2. You are getting more credit. Another sign of expenses exceeding income is getting more credit cards, usually because you have exceeded the limits on the ones you have. This just increases your debt and dependency on credit to meet your living expenses.
  3. You’re doing to many balance transfers. Even if it gets you a lower interest rate and can have its advantages (if you read the transfer terms carefully), doing this just keeps you dependent on the cards and doesn’t ultimately pay down your debt.
  4. You have no idea what any of this is doing to your credit. Don’t live in denial. Know what your credit scores are and how what you are doing is affecting them. Even if the news isn’t good, and you do in fact have bad credit, this can tell you that bankruptcy may not make it much worse, and can remove that fear that may be keeping you from filing.
  5. You are taking money out of your pension to pay bills. Borrowing against, or worse, withdrawing money from your pension, sacrifices your future to keep you above water and is a really bad idea! It doesn’t solve your financial problems and keeps you working longer just to pay your bills.
  6. You see no way of paying off your credit card debt in 3 years.  If, either because you cannot live without your credit cards or can’t afford the monthly payment to do this because the balances are too high, you cannot pay off your cards in 36 months, bankruptcy may be the only way to get rid of the debt and move on.

Still Have Questions?

If this sounds like you, you need to create (or update) a budget to see what your monthly living expenses are without the credit card payments. If you are still deficit spending, then you need to do some belt tightening. Then you need to consider bankruptcy as a way to get rid of your debt backlog and get a fresh start.

Not sure if bankruptcy is right for you? Take the quiz to the right to find out more!

Still not sure if you should file bankruptcy? Then download my free book, Am I In Too Deep? A Guide to Knowing When You Need to File Bankruptcy in New Jersey to find out if it might be the solution.

I Can Help!

If you live in Burlington, Camden, Gloucester, Salem or Cumberland County, have decided to file bankruptcy, and are ready to take action, then call my office at 856-432-4113 or contact me through this site for a free consultation in my Woodbury office to discuss your case.

If you are looking for more information about bankruptcy, then download my free book, Top Questions People Ask About Filing Bankruptcy in New Jersey.

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Steven J. Richardson
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Bankruptcy, Collections, Student Loan, DUI and Traffic Court attorney in Woodbury, NJ.