Newburgh Area Bankruptcy Lawyers Discuss Warning Signs of Financial Distress
There are some “subtle” warning signs of imminent financial distress, and some that are not so subtle. If you recognize any of these signs, your financial future is cloudy at best, and you should take corrective action before the storm clouds burst and leave you drowning in debt.
- Using your credit cards to cover basic cost-of-living expenses such as food
- Your credit cards are maxed out
- Balance transfers from one card to another card that has a lower, “teaser-rate” interest (often good for only a short period of time)
- Only able to make minimum payments on your credit cards
- Taking “cash advances” from one card to make a payment on another – commonly referred to as “robbing Peter to pay Paul”
- You need a co-signer before you can qualify for a car loan
- Unable to afford health insurance because all of your money is going to service your revolving debt
- Constantly refinancing your house to pay down debt
- Living “paycheck to paycheck”, with no savings to fall back on
Not so subtle signs
- Creditors calling you at all hours of the day or night at home or at work
- Creditors calling your neighbors
- Process servers lining up at your door to commence lawsuits against you
- Your house is in, or on the verge of, foreclosure
- The IRS filed a tax lien against you
Is your answer “yes” to any of the following questions?
- Have you experienced:
- Business reversals?
- Health problems?
- Have these problems caused you to accumulate a pile of bills that you will be unable to pay in the foreseeable future?
- Is a secured creditor threatening foreclosure or repossession?
- Are unsecured creditors filing lawsuits, or threatening to file them?
- Is your salary subject to wage garnishment?
- Has a creditor placed a restraint against your bank account?
- Has the Sheriff seized an asset (i.e. automobile, etc.) of yours?
If you answered “yes” to any of these questions, then you should contact us to arrange a FREE BANKRUPTCY CONSULTATION.