Everybody has debts, so it is nothing to worry about, right? If that is what you are thinking, then you probably haven't taken stock of your debts and assets. While it may be true that nearly everybody has debts, it may not be a big deal only if you can afford to settle them, and you are in the process of doing that. However, if you have too many outstanding bills, and you aren't managing them well, then it's time you had a talk with a bankruptcy attorney. Here are four signs that it is high time you had the bankruptcy talk with your lawyer:
You Spend More Than You Make
A comparison of income versus expenditures is one of the best ways of gauging whether you can manage to clear your debts. Even without sitting down with a financial expert, you should be able to tell if your monthly expenses far outweigh your income.
It may not be a disaster if this happens once or twice. However, you should be worried if every month you can't pay for the necessities such as mortgage, food, and childcare – and still service your debts. You should particularly be worried if the debts continue piling on every month.
You Have Experienced a Costly Life Change
Most people are struggling with finances, but they still manage to stay out of extreme debt and pay their bills. However, this may change for you if you experience a sudden life change. Consider a situation in which you are already struggling with bills when an uninsured risk (such as a flood) flattens your house (and its contents), and it also damages your car.
Your Creditors Are No Longer Interested in Renegotiations
The arrangements you have with your creditors also matter. However, there comes a time when your creditors grow weary of your renegotiations and promises and start turning to collection agencies. If you have reached that point with multiple creditors, then it is time to start considering bankruptcy. You don't want to face a lawsuit because it may even plunge you into more debt. Move fast if your assets are on the brink of being garnished; your attorney may succeed in preventing such happenings.
Consulting an attorney (like those at Vandeventer Black LLP) does not mean that you have to file for bankruptcy. The attorney may even prescribe for you some options for avoiding bankruptcy if that would suit your situation best. Still, if the lawyer advises you that it is the route to take, then that is what you ought to do.
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