Bankruptcy can sound frightening, but it’s absolutely not. In fact, it’s one of the best ways to get your finances back on track. However, individuals still put off filing for bankruptcy even when they become aware they’re in serious financial trouble. However, it’s better to react quickly and contact a bankruptcy attorney in Rancho Bernardo as soon as you notice the first signs of severe financial trouble.

How do I know if I should file bankruptcy?

Sometimes, you’re just a little behind on your mortgage payments or you’re unable to pay all the for a single month, and that’s OK, it can happen to everybody. However, financial difficulties have a way of getting worse, getting you in an inopportune situation. As more and more signs rear their head, it’s time to consider filing for bankruptcy, and fast.

Everyday spending is becoming difficult

The first sign of the upcoming financial crisis is that you can no longer easily manage your day-to-day expenses while dealing with your mortgage, credit card debt, loan expenses, and other potentially existing financial obligations.

If you find yourself in a situation where it’s getting more and more difficult to afford normal daily living expenses, it may be the first sign that you’re involved in serious financial trouble that you won’t be able to escape without bankruptcy.

You’re using new credit cards to pay off your old credit cards

This is one of the most obvious and frequent telltale signs of looming severe financial trouble. First, it begins by using your credit cards to manage your daily expenses. From there, as you begin to increase your debt on your credit cards, you’ll start struggling to pay them off, making you use new credit cards to pay the debt off your old credit cards, entering a vicious cycle of neverending debt.

The only way to break it and to regain your independence is to file for bankruptcy and clear off as much of this debt as possible.

Debt expenditures are starting to exceed your income

At a certain point, you may only be struggling to make ends meet and put off paying a portion of your existing debt. While not great, you could switch up your habits and get back on track. However, if your debt starts exceeding your regular monthly income, it’s time to put a stop to it by filing bankruptcy and writing off a hefty portion of your financial difficulties.

You’re starting to skip on your bills

Skipping on a bill or two during one month can happen to everybody. Maybe you’ve had some unforeseen expenses or you’ve allowed yourself a luxury or two. If this becomes a habit and you find yourself constantly skipping bills and being unable to meet your basic monthly obligations, you’re going down the road to financial trouble. This is a clear signal that you should consider bankruptcy.

You’re dipping into your savings

This is a big no. No matter how dire the financial situation is, you should never start spending your savings on repaying any portion of your existing debt. If you’ve spent a month or two dipping into your savings, trying to make it all work, consider bankruptcy instead and get out of it in time.

The phone calls are coming in

Finally, if your creditors are starting to contact you all the time, bankruptcy is your best bet to not only put a stop to their harassment, but to also get out of your debt and bring yourself some much needed peace of mind.

Who’s the leading bankruptcy attorney in Rancho Bernardo to help me file bankruptcy?

Most people try to postpone bankruptcy for as long as possible, and there’s no reason for that. Bankruptcy is an excellent solution to your financial problems, especially if you take the time to prepare and adequately decide between Chapter 7 and Chapter 13 bankruptcy, get familiar with the different types of debt bankruptcy recognizes, and learn more about the most common mistakes you can make on your means test so you can avoid them.

All this can be a bit complicated, which is why you should always enlist professional assistance from the leading bankruptcy attorneys in Rancho Bernardo and the area – Chang & Diamond. We offer professional legal advice and representation to all individuals looking to file bankruptcy. Our mission is to bring you a predictable financial future and absolute peace of mind. With our help, you’ll soon be able to enjoy Lake Hodges again. Give us a call today!