Unfortunately, life may not always go as planned and depending on certain circumstances, we can find ourselves in serious debt. Bankruptcy may not be an option for everyone, however here are some important signs to notice if you are headed for bankruptcy. Thankfully, keeping track of these things will allow you to be proactive about your situation and will be your best bet to finally be debt-free.

You Owe More Per Month Than You Make

If your monthly income after taxes isn’t enough to cover what you owe, then you could be looking at a future bankruptcy. When you’re constantly paying out more than you make it will be difficult to keep up with your expenses and maintaining your lifestyle. In order to determine if you fall in this category, add up all your minimum monthly payments and living expenses.

Debt Collection Agents Are Calling

When you neglect to pay your bills or simply can’t afford to pay them, legal action can be taken against you. Or, your creditors have given your contact information to a debt collection agency to help them recover the money you owe. When you are behind on your payments while debt collection agents are calling or a lawsuit has been taken out against you, bankruptcy may be your best option to handle the situation effectively.

You Rely On Payday Loans

Payday loans can be dangerous. They offer you cash right away with astronomical interest rates. When you start with one payday loan, there is a chance you’ll continue to need more to stay up to date with your debt payments. Furthermore, you’ll be paying off your payday loans with more loans and the cycle is hard to break.

You’re Robbing Yourself

By taking a cash advance from one credit card to pay off another, you are playing a very treacherous game with your finances. Taking out another credit card to pay off a loan will not make your debt disappear, it only makes it larger and harder to pay off. When you borrow money in this way to make payments, you’ll find yourself with nothing left to borrow.

You Can’t Afford To Leave The House

When you’re so heavily in debt, going anywhere that isn’t your place of work can be tough. If you owe so much money that you can’t afford to have dinner with friends or even afford gas for the car to drive your children to practice, then you may be ready to declare bankruptcy.

If you are struggling to make your monthly debt payments and you can relate to the above signs, please contact us. We can help you understand everything you need to know about the bankruptcy process and see if it’s the right option for your financial situation.