Here are five situations that should tell you that your finances are in desperate shape and you may need federal bankruptcy relief
You regularly ask for payroll advances from your employer, take cash advances from credit cards, or borrow from payday loan companies.
Once a person is borrowing next month’s paycheck to pay this month’s bills, the situation is very grim. Taking constant payroll advances can jeopardize your job; credit card cash advances carry very high fees and interest; and payday loans have high interest rates. All of these advances have the same effect on your paycheck: there is less money next month to pay bills. This often creates an endless cycle of debt.
You are constantly late on paying basic monthly obligations including rent or mortgage, car payment, or utilities.
Late penalties can consume a paycheck very quickly. Late payments can also place your property at risk. For instance, if you are consistently late on your car payment, not only will you incur late fees, but at some point your lender may decide to repossess your vehicle.
You have stopped paying creditors and are ignoring collectors.
People who are unable to pay monthly bills often compound the problem by ignoring their creditors. Late notices turn into harassing phone calls which turn into court summonses which turn into wage garnishments. Nothing good can come from ignoring your debts.
Your paycheck is being garnished or your bank account is frozen.
People unable to pay their debts often wind up with court judgments and wage garnishments. Bankruptcy attorneys regularly receive desperate phone calls from people who have just discovered a wage garnishment or bank levy.
You are consistently depressed by a hopeless debt situation and contemplate illegal acts or suicide.
Individuals in debt often become depressed and feel that their situation is hopeless. Not so! The federal bankruptcy laws were written by Congress to give hope to those overwhelmed by debt. You can have a fresh financial start and a different future. There is no reason to commit an illegal act to solve a debt problem that can be fixed legally.
If you are experiencing any of the above warning signs, talk to an experienced bankruptcy attorney and consider your legal remedies. Don’t let debt control your life or your future. Take charge today! Call Haines and Kreiger for a free bankruptcy consultation.