I met with a young man the other day who was feeling overwhelmed by his money situation. He wanted to know at what point he should start thinking about a plan for his debts and what the warning signs for bankruptcy are.
He was having trouble paying his bills. He was behind on a bill payment for his car and was worried about catching up. He didn’t have the money to make two payments the next month and he was afraid that he would lose his car. His situation was so tight, he was considering going to a cash advance place in order to get a pay day loan so he could pay his rent on time.
He was managing to make payments on some of his credit cards, but only the minimums. He felt like even though he made those payments, his card balances never went down. He was thinking about moving his debt to one credit card, for lower interest, to see if that would help.
For the other cards that he wasn’t able to make payments on, he had collection agencies calling him at home. He stopped answering their phone calls because he didn’t have any money, but that just made matters worse. The agencies were calling him at work now, and were threatening a wage garnishment.
He felt like all he was doing was juggling his paycheque every month, and was worried about the time when it wouldn’t be enough anymore.
I told him that he was experiencing all of the warning signs of a bankruptcy. He is behind on a lot of his bills and is having trouble paying the rest, he is considering a cash advance on his pay cheque to make rent, and collection agents are calling him, threatening him with serious action.
People often wonder what the warning signs of bankruptcy are. This young man was right in the middle of his warning signs. Fortunately for him, he got help and made a plan that would work for his situation before he ran out of options to deal with his debt.
A lot of people try to ignore the situation, hoping it will just go away. By the time they go for help, they don’t have any options besides bankruptcy left.
If this young man’s situation sounds like yours, then give me a call at 310-PLAN for a free consultation. You can also email me any questions you might have about bankruptcy warning signs. Let’s work together to come up with a plan that will work in your situation.