Bankruptcy 101

Bankruptcy is on the rise in the United States. Today we’d like to discuss the warning signs that may show you are heading toward bankruptcy.

First, are you missing payments or are you paying your bill slate? If this is the case ask yourself why. Is it because you’re simply disorganized, or is it because you don’t have the money to pay? Take a good look at your finances and figure out which bills are absolutely necessary to pay and make sure you eliminate things that are wants or superfluous.

Second, take a look at your credit cards. Are you maxed out? Have you only been paying the minimum balance? If you continue this way, you’ll dig yourself deeper and deeper into debt. Stop charging on your cards and start paying a little extra every month to get them paid off sooner.

Third, have you lost a job or are you on leave? Has something happened that has drastically reduced your income? If this has happened and you don’t have savings, then you may be on the road to bankruptcy. In order to prevent this eventuality, you should have up to six months of savings put away that would allow you to pay all necessary bills. If you don’t have any savings, start to put a little away every month. It will quickly add up.

Of course, there are times when filing bankruptcy makes sense and can help you recharge and get your financial house in order. The times to consider bankruptcy include the following: possible foreclosure on your home; debts mounting to greater than what you make in one year; having your wages garnished; a repossessed vehicle or other valuable possessions repossessed; high medical bills; collection calls/letters; overdue payments on multiple bills.

If you think it’s time you filed for bankruptcy, we can help. Call Alpina Legal today and let us take you through the process.