Are You Knocking on Trouble’s Door? Our Arizona Bankruptcy Lawyers Share Some Common Red Flags

Before we meet bankruptcy, most of us have a very clear vision of what bankruptcy will look like. Bills piled on the table, repossessors knocking on the door, zeroed out bank accounts—in this vision, the signs seem obvious. In reality, however, bankruptcy is a lot sneakier than the black-and-white version most people envision.

For a huge percentage of people, bankruptcy is a phantom that exists just beyond each bill you manage to barely pay, and each swipe of the credit card you are forced to make. While you are making ends meet, bankruptcy is that voice in the back of your head telling you that all it will take is one major setback—a major house or car repair, a medical bill, a divorce—and everything will crumble.

Four Cornerstones of an Impending Arizona Bankruptcy

Despite feeling like it can come out of nowhere, bankruptcy has very specific “tells” that can alert you to possible troubles. One of the most common and well-known signs is if you have begun missing payments on your credit cards or other bills. If you find yourself slipping into the “robbing Peter to pay Paul” mentality, skipping one payment to make another, you are entering dangerous financial territory.

Another sign may be if your loan options have deteriorated over time. When your finances are healthy, you will likely qualify for quality, low-interest loans. As trouble begins brewing, however, you may have to turn to high-interest title loans or other similar loans, which can put you in a dangerous financial spiral.

While it may seems trivial in times of financial stability, your savings or emergency fund is also a good barometer for the health of your finances. While we can never plan for tragedy, we must at least prepare for it financially. If a single event will upset the entire equilibrium of your finances, you may be heading down a troublesome road.

Finally, one of the biggest “tells” of bankruptcy is the state of your credit card or cards. Most Americans do use credit cards, but if you find yourself turning to credit to pay for everything, or if you have maxed out multiple cards, you have likely begun to dig yourself a hole from which it will be very difficult to emerge without bankruptcy.

Call Experienced, Knowledgeable Professionals for Help Today

If these four warning signs hit a bit too close to home, now is the time for you to take control of your finances. Bankruptcy is an invaluable tool that, when done correctly, can leave you financially independent and free of the weight of unpaid bills and collection harassment. The Phoenix bankruptcy attorneys at Curry, Pearson & Wooten are available to help you escape the crushing weight of financial trouble—call us now at 602-258-1000 for a consultation with a lawyer today.