5 warning signs that show you may need to file Bankruptcy

First, a little history about bankruptcy.  Bankruptcy originates from the Bible.  The Lord told the Israelites in the Old Testament to forgive their debts every seven years and our founding fathers incorporated this into what we know as bankruptcy.

These laws are designed to help honest people get a fresh start in life without losing everything they have worked for.  There is no absolute rule on who should file bankruptcy, but most people wait until it is too late to contact a lawyer to see if they will benefit from filing for bankruptcy.

Here  are some of the alarm signals you should consider as warnings that it is time to contact a Mississippi lawyer for information about bankruptcy:

  1. Are you struggling to pay rent or mortgage payments? When the bills start piling up most people will pay the debt collectors that call or harass them the most.   This is wrong, wrong, wrong.Feeding your family and keeping a roof over their heads always takes priority over debt collectors and credit cards.  You never put your house in jeopardy to pay credit cards, medical bill and other unsecured debts.
  2. Are you stressed out and losing sleep over your bills?  Losing sleeping, arguing about money with your spouse because of debt problems? Life should not be like this.  One of the leading causes of divorce is disagreements about money.  Bankruptcy may not solve all of your marital problems but it will remove money problems as a source of stress in your marriage.
  3. Are you suffering health problems because of money worries?  If you work two jobs or all the overtime you can get, this can lead to burnout, anxiety and exhaustion and will not solve the underlying problems.  Too many people lose sleep and suffer stress-related health problems because of financial struggles and harassment by debt collectors.
  4. Are you acting reckless and considering dangerous behavior?  Have you considered illegal activity to solve your problems or do you want to do something that will put your health or your family’s health at risk? Are you gambling to win your way out of debt or drinking? Are these things out of character for you? These are signs of despair and desperate thinking and it is time to see a bankruptcy attorney.
  5. Are you robbing Peter to pay Paul? Do you have credit cards that are maxed out? Putting off creditors and shuffling money and debts from one credit card to another is not how you normally pay your bills. Applying for new credit cards to add to the shuffle or to try to get low balance transfer rates are all signs that you are drowning in debt.

If you recognize one of these danger signs call for a meeting with a bankruptcy attorney and find out what your options are.   If you reside in Mississippi and are interested in exploring both bankruptcy and non-bankruptcy options, contact us for a free consultation 601.948.1600.