Law Office of Rick Morin, PC

One common thing that I hear from my clients is that they have considered bankruptcy for a long time. In some cases, multiple years have gone by but they haven’t taken any action to get their finances in order. Here are the top 5 signs that people need to be aware of when considering whether bankruptcy is right for them.

1. Maxed Out Credit Cards

Are your credit cards always maxed out? This is a sign that you’re living with more debt than you can pay off. Large amounts of revolving debt isn’t necessarily a bad thing, but if it is a common occurrence, it can be a sure sign of financial distress.

2. Taking Out PayDay Loans or Cash Advances

A “get money now” loan may seem like a good idea if you’re in a tight spot. However, these loans are often the last straw for my clients. Payday loans and cash advances have oppressively high interest rates. I’ve seen some loans over 100% interest per year. There’s no hope of paying these things off. Don’t be a victim of these near-criminal loans. It is probably time for a fresh start. 

3. Feeling Overwhelmed

Many people feel stressed when it comes time to pay the bills. However, there is a difference between stress and hopelessness. If you can’t reasonably foresee a way to get your financial situation in order, a bankruptcy can provide you with a fresh start so that you can focus on the important things in life — not your bills. 

4. You Are Not Sure of Who You Owe Money To

If you are not sure exactly how much you owe and to whom, you have a problem. This is a common problem that I see in my office and is a surefire sign of financial distress. You can’t reasonably expect to pay everyone back if you’re not sure who your debts are with. Now is the time to sit down and figure this mess out. And bankruptcy might be an option for you. 

5. Afraid of Harassing Creditors

Do you let all your calls go to voicemail or wait days, possibly weeks, before opening your mail? Ignoring the problem won’t make it disappear. Take control of the situation and stop ignoring your creditors. You and you alone have the power to fix the situation that you are in. 

Have you thought about bankruptcy but you’re not sure how to get started? Please call or text my office at (916) 333-2222 for a friendly and free bankruptcy consultation.