You Know it’s Time to File for Bankruptcy When…
Living with debt has become the acceptable norm in our modern society. Nevertheless, the stress associated with accumulated debt can be unbearable. If you find that the piles of unpaid bills that you've been ignoring has grown substantially or that your phone rings incessantly from bill collectors, it may be time to try a different approach to tackling your debt-load.
Sometimes people decline to seek help in reducing their debt because they feel too embarrassed. Yet, if you want to take control of your finances, the advice from an experienced bankruptcy attorney is invaluable. The first step is to recognize the signs that you have entered the financial danger zone. Here are some questions to help you assess your situation:
- Do you make only the minimum monthly payments to your creditors?
- Do you receive calls from more than one debt collector?
- Does thinking about your finances cause you to feel nervous?
- Do you make the majority of your purchases on credit, including necessities?
- Does debt consolidation appeal to you?
- Are you reluctant to find out how far you are in debt?
Evaluating your assessment
If you answered affirmatively to more than two of the assessment questions, you should give serious consideration to financial affairs. You should start by making an inventory of all your liquid assets. Be sure to include any equity you have in real estate and vehicles. Also include retirement and college savings accounts, bonds and stocks. Then, calculate your debts by gathering all credit statements and bills. Finally, compare the totals. If your debts are significantly higher than your assets and you cannot afford to pay off your debts, then you might consider filing for bankruptcy.
Bankruptcy is not an easy fix to your financial troubles and there are long-term consequences that you must consider. Consult with experienced Orange County bankruptcy attorneys at Fishback Law Corp to discuss your options.