You might be one of the lucky people in Tennessee who happens to be a financial wizard. Then again, you have a greater chance of being like the majority of others who know enough about finances to make ends meet but would need additional support if a serious crisis were to arise. Personal economics typically fluctuate, and you might have several good years in a row then fall upon some tough times.
In fact, you might shift back and forth between these two financial states numerous times within the same year. It can be challenging to know whether your current money problems are minor and temporary or whether you might be in over your head and in need of filing for bankruptcy. Speaking with someone well-versed in bankruptcy issues can help you determine a best course of action in your specific circumstances.
Warning sign number one that you might be headed for bankruptcy
If you’ve always been pretty good at saving money but have been unable to set any savings aside for a while now, it’s definitely cause to closely review your financial situation. It’s not uncommon not to have a fortune in savings, especially nowadays when the cost of living is high.
However, if you are never able to set any money aside in case of emergency or save up for a vacation, a new vehicle or some other luxury item you’ve been wanting, then there may be more than just lack of savings that’s a problem. You might be experiencing a full-blown financial crisis.
Do you have a lot of outstanding payments due?
If you owe on a mortgage or have a credit card balance, you no doubt make monthly payments to satisfy your debts. If a financial crisis hits, this can become more and more difficult. You might miss a payment but resolve to make up for it by paying double next time.
If the next time rolls around and you still can’t make a payment, it’s cause for concern. It’s always a good idea to call your lenders right away to discuss what might be done to rearrange your payment plan or delay payments until your finances are back on track. If you miss several mortgage payments, you could wind up at risk for home foreclosure.
Are collections agents calling you all the time?
If you’re phone seems to be ringing off the hook with callers saying their calling on behalf of a creditor to attempt to collect a debt you owe, it might be a sign that it’s time for you to consider alternative forms of debt relief such as bankruptcy.
There are several types of bankruptcy and you might qualify for one but not another. If you’re experiencing signs of serious financial crisis, it wouldn’t hurt to research bankruptcy options to see if any available program is a good fit for you.