Bankruptcy Indicators

Bankruptcy Indicators

There is no formula for figuring out when you should file a bankruptcy case. However, below are some indicators you may need to file for bankruptcy:

  • You have lawsuits filed (or being threatened) against you
  • You are paying monthly minimums on your cards and the balances are increasing
  • You are only able to make the minimum payments on your cards
  • You are current on mortgage and car payments but not on unsecured monthly payments
  • You are behind on your mortgage payments but want to catch up
  • You are facing foreclosure and you would like to try to keep the house
  • You already had a foreclosure or car repossession and have a deficiency
  • You are unable to keep up with a house mortgage wish to surrender it
  • You have a delinquent second mortgage or home equity line of credit
  • You are delinquent on HOA or condo fees
  • You are being contacted by creditors by phone, mail or social media
  • You have had one or more vehicles repossessed
  • You owe state or federal taxes
  • You have small business related debts
  • You are unable to make your student loan payments
  • Your are making student loan payments, but they are too high
  • You have judgments and/or judgment liens
  • You are more than 30 days behind on your bill payments
  • You are being contacted by collection agencies
  • Your wages or your bank account may be garnished or levied
  • You have high medical bills not covered by insurance
  • You are facing issues with MVA registration
  • You owe parking tickets or other traffic violations
  • You have debt relating to a divorce
  • You do not have a substantial amount of savings
  • You need a fresh start

The above list is not exhaustive. There are numerous reasons for filing for bankruptcy.