4 Signs that Show That You Are Headed for Bankruptcy

It’s a bad idea to ignore the personal bills that might have been piling up as you might end up in bankruptcy court.

This will damage your credit rating but it can even affect from getting a job as well in the future.

That said, here are 4 ways by which you’re headed for bankruptcy:

#1: Already Missing payments

If you can’t keep up with your payments in the form of credit card payments, auto, student or home loans or even medical bills, then it’s clear that you are going to struggle with bankruptcy shortly. What will make matters worse is if you can’t even make minimum payments.

#2: Don’t qualify for a debt management plan

A number of consumers usually enroll for a debt management plan in order to deal with mounting debt. This could mean reducing their credit card rates or their payments to creditors too. However, if a counselor finds that you don’t have enough money to sign up for a debt management plan, then it might be time to file for bankruptcy.

#3: Debt collectors are demanding payments

If you’ve been receiving threatening calls from debt collectors, it’s a warning sign that you’re going to be bankrupt soon. Usually, these calls occur around the 30 or 90 day mark. This past-due notice might also be reported so as to affect your credit score too.

#4: Credit cards are maxed out

If your credit cards are maxed out and the credit lines will not be increased by the bank, you’re in serious trouble. What will make matters worse is the fact that if you’ve been using your credit cards to cover basic expenses, then you might have to file for bankruptcy once they’re maxed out.