Many Wisconsin residents have debt of some sort, whether it is mortgage debt, credit card debt, student loan debt or medical debt. But for some individuals, the debt spirals out of control and becomes unmanageable. When this happens, bankruptcy may be the only option.
But how do you know if bankruptcy may be in your future? Recently, Credit.com released an article identifying several signs that you could soon find yourself in bankruptcy court. Here are the signs:
- You can’t keep up with your monthly payments such as your mortgage, student loan, credit card or car payments.
- You have had a major personal set-back such as a job loss, serious illness, divorce or death in the family and are finding it impossible to recover financially.
- You don’t qualify for a debt management plan because your income is not high enough.
- You have maxed-out your credit cards and credit card companies won’t increase your credit lines.
- Taking out a home equity loan didn’t really help your situation and now you are at risk of losing your home.
- You have thought about turning to payday loans or other high-cost loans because of your desperate situation.
If you can identify with one or more of these signs, it might be a good idea to contact an experienced bankruptcy lawyer for advice on what to do next, whether it is going through with bankruptcy or finding an alternative to bankruptcy that could help solve your debt problems.
The good news is that countless other people have been in your situation and have bounced back financially after taking control of the situation and making a plan to get out of debt. Bankruptcy can hurt your credit and seem like a last-resort, but in some cases it is the best option.
Source: Credit.com, “7 Signs You’re Heading Into Bankruptcy,” Judy Sorensen, Aug. 4, 2014
