Signs That You Are Going Bankrupt

1. Signs That You Are Going Bankrupt Let’s face it, life does not always go according to plan and before you know it, you might be heading towards the wrong direction. Are you dealing with too much credit card debt or struggling to pay your bills? If this is the case, you might want to take a quick look down memory lane and get a clearer picture of some of the major events that has changed your current lifestyle. If you think you are questioning your financial status and are wondering if you are headed towards bankruptcy, you may want to speak with a bankruptcy lawyer in Baltimore, Maryland as soon as possible. Below are a few warning signs that you can take note of in order to see if you may be on the path to bankruptcy: Not Enough Savings: Your savings are usually dedicated for your rent, mortgage, food, gas, bills, and other everyday living expenses. However, if you do not have enough to take care of these basic necessities, then you might be on the road to bankruptcy. Financial advisers recommend keeping track of your living expenses in a span of 3-6 months in order to figure out the changes. Borrowing Money from Others: Nobody wishes to be in the position of having to ask someone for money. Not only does it make you look bad, but it can also end friendships. It can become a vicious cycle that can last as long as you let it. Plus, it can be difficult if you do not end up paying that person back. Your Bank Account Flashes Negative: For most part, your bank account should come out as positive. Although, if your account has been flashing negative for some time, you are going to have to come up with a plan to quickly salvage the situation. Low Balance on Credit Cards: Credit cards are great ways to help you manage your money and conveniently make payments. It gives you a short-term loan for big purchases and the opportunity to repay your debt in a certain amount of time. However, if you are using your credit cards more often then you should for your everyday essentials, then this is a sign that you are down to your last few bucks. If your credit cards are about to hit their limit, it is best to get in touch with a Baltimore bankruptcy lawyer to discuss your options. Minimum Payments: You might have $3,000 in credit card debt, but if you end up owing only $20 or $40 a month, those minimum payments can accumulate and keep you in credit card debt for a long time. If you want to stay away from credit card debt, you need to pay much more than the minimum. If times get tough, you can carry a balance for a period of time, but if your money is already too tight wherein you cannot afford to pay more than the minimum, you might be headed for a financial crisis. Calls from Creditors: If you are receiving frequent visitations, letters, and calls

2. from creditors who are reminding you of the possible steps that are about to take, this is a clear sign that you will be heading down a financial nightmare. Nobody wishes to be in this position, but unless something is done quickly, you might end up paying even more than you should. Being a Guarantor of a Loan: A common sign in many bankruptcy cases is co- signing a loan for someone else, and then you are held responsible by the lender. There are many implications to consider when being a guarantor. It is best that the person you are working with is a family member or a close friend whom you can trust. While we are all human, it is important to remind yourself that we all make mistakes. Now that you are aware of a few signs that could lead you down the pathway to bankruptcy, you can quickly find a way to redeem a hold of your life before it is too late. Although money is not always easy to earn and it can become a burden if you are experiencing debt, you can simply call a reliable bankruptcy lawyer in Baltimore, Maryland to help you get back on your feet.