You are well aware when you are experiencing financial difficulties. For example, you are late on payments, creditors are knocking on your door, and your stress levels are over the roof. But, while you may be aware that something has to change, you may not know how to manage the situation.
To avoid things becoming worse and to assist you in preventing insolvency, here are some of the early, as well as more severe, warning signs of bankruptcy that you should be on the lookout for and address immediately. The sooner you act, the greater your chances of success are.
The primary problem for many people is that they ignore or fail to recognize warning signals and then wait until it is too late to take remedial actions. The best course of action is to recognize challenging situations early on.
Early warning signs of an impending bankruptcy
Unpaid bills and payments
The inability to pay your bills and other expenses is one of the first and most visible indicators of possible bankruptcy. If you cannot pay your dues on time, this is the first sign that you are heading towards insolvency.
People and businesses that experience financial difficulties may often delay payments, seek extensions or emergency financing, or fail to pay bills entirely. If you cannot meet your financial commitments on time, this should raise red flags.
If you’re having difficulty preparing precise financial statements due to disorganized and cluttered paperwork, this is another reason for concern. That is because ineffective planning may result in inadequate financial management.
If you are out of work for a long time and unable to secure a position, this may be one of the situations leading to bankruptcy. Sometimes, people who lost job can secure a better position with a different company promptly. However, if you are not able to find one – due to some injury, medical condition, or something else, you should discuss it with your bankruptcy lawyer and seek out other options.
Low income and unexpected expenses
If your income is low and doesn’t allow you to keep us with your financial obligation, it is time to seek assistance from a bankruptcy lawyer. Declaring bankruptcy becomes inevitable when you have loans that you cannot repay.
High medical expenses
If your medical expenses are very high due to a severe illness, or injury, it is time to consult with a bankruptcy attorney. A lot of people all over the USA declare insolvency because of their medical expenses. This is because treating medical help may cost thousands of dollars.
How to act now.
Bankruptcy is a delicate and complex proceeding, and you want someone with plenty of experience to consult you and guide you through the process and help you determine the scope of the discharge.
If you would like to find out whether bankruptcy is the right option for you, please request a call-back by submitting a short online form. All initial consultations are free and confidential.