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If you are having a tough financial period, getting a debt is always a solution. However, if you are not careful, the debts may pile up and become a big problem for you. As a result, you’ll have no choice but to file up for bankruptcy to ease your situation. Since bankruptcy can be confusing and challenging, it is wise to evade all situations that may make you be declared bankrupt. Luckily, some of the financial trends that you may have will show you that you are at risk of being declared bankrupt and work towards evading it. Here are some of these signs that you are headed toward bankruptcy as you will get advised by lawyers in our bankruptcy law office in Chicago.
You Are Stuck In The High-Interest Or The Payday Loans.
Payday loans and high-interest loans are usually an option when you need money but lack another solution. For this reason, if you realize that you permanently depend on them almost every day, something is not okay. Payday loans are intended to be a bridge as you await your next investment. Therefore, if you do not get the money you intended to clear your credit, you will be forced to get another loan, and thus the beginning of your piled-up loan. On the other hand, if you are working on the high-interest loans, you will spend a lot on clearing the loans and the interests. If you realize that you depend a lot on these loans, then change your financial spending as you may be heading towards bankruptcy.
Your Credit Card Debt Is Increasing.
Though credit cards will help you out in a time of need, they may lead you to bankruptcy sooner than you know. Therefore, if you realize that you depend on credit card bills to help you make it through the month, you need to talk to a bankruptcy lawyer. That is because it is almost impossible to break the cycle unless you get a massive influx of money within a short time. Additionally, if you can only afford the minimum payment for your credit card, this is also a sign that you are facing a financial pit hole. In this, your situation then gets the seek help from a bankruptcy attorney before it is too late.
You Do Not Have A Home Equity Option.
Home equity is an option that you can use to clear debts, such as credit card balances. In this case, if you have loans that exceed what your home is worth, then you have negative home equity. With negative home equity, you do not qualify for a home equity loan that you could use to reduce your debts. Therefore, if you realize that home equity is not a solution for you, this signifies, you are heading into a financial pit hole. At this point, it is advisable to talk to a bankruptcy lawyer and get the right solution before filing for bankruptcy is the only option that you have.
You Are Always Waiting For Your Lucky Day.
Winning games such as lotto or getting an inheritance of a significant sum of money is real. However, if this is what you are waiting for to pay for your big day, then everything is not okay. No matter how high your chances are, it will be so devastating and frustrating if your hope does not come true. Additionally, if you are waiting for a Christmas bonus to pay a debt or gambling to help you clear a mortgage, then again, this is a sign that all is not well financially.
Your Savings Account Is Empty.
One of the signs that you have financial security is when you have enough in your savings account. Therefore, when you realize that you have a zero balance in your account, you may be draining financially. An empty savings account means that you are not ready for a rainy day. For this reason, when the rainy day comes, you will be in danger of getting a loan, and thus the beginning of debt pile-ups. At this point, you must check your financial spending since you may face bankruptcy.
Bankruptcy does not happen overnight. If you are careful, it is possible to notice some of these signs that show that you are on the road to bankruptcy. Above are some of these signs that bankruptcy may be knocking on your door.
