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Signs You May Be Headed for Bankruptcy

Times are tough for a lot of people. Working two jobs, living paycheck-to-paycheck, and always skimping on necessities may seem like a normal situation for many people, but it may mean you are headed on a collision course toward bankruptcy. Do you know the signs that you may be headed toward bankruptcy? 

For most people who file for bankruptcy, the process, while sometimes a bit stressful, really signals a fresh start. It means no more harassing phone calls, no more piles of bills that can not be paid. And it might even mean a path to a healthy financial future. So don’t panic if you recognize some of these warning signs that bankruptcy might be an option in your future. Bankruptcy is not the end of the world. 

Red Flags of Bankruptcy

Missing or Late Payments

One of the first signs of financial trouble is the inability to pay bills on time or at all. It may start as not paying the full amount each month, then not paying the minimum due, until finally, no payment or late payments are being made when the money becomes available. Take a hard look at your bills and what percentage of your income is going toward paying them off. 

No Emergency Fund

It happens to all of us at some point. A car needs expensive repairs, a child breaks a leg and the hospital bills pile up, or something happens that causes funds to be needed right away. If you have no contingency plan for such events, this is a warning sign that you may be headed for bankruptcy. Having an emergency fund that can get you through a few months of bills, rent/mortgage, and food/medicine that is critical to staying financially healthy. 

Loans Aren’t Helping 

Did you take out a home equity line of credit or some other form of loan and it isn’t helping you stay ahead of the bills. Now you are facing a mortgage, a home equity payment, and credit card bills. These are all signs that financial trouble is at your doorstep. 

Creditors are Haunting You 

If your phone rings and you shudder to think of which creditor it is this time, then you might have a problem. Once your creditors are calling, sending letters, or have already sued you, this is the biggest tell-tale sign of bankruptcy. Now might be a good time to get credit counseling or seek the professional help of a bankruptcy attorney. A bankruptcy’s automatic stay can get these creditors off your back and help you get a fresh start.

Call The Law Office of Barry R. Levine with questions and let us help you. Call us at 978-922-8440, or visit our website at