To many people, filing for bankruptcy can be a frightening thought, but ultimately, it can save a life and give a person a fresh start when they need it most. If you find yourself at a crossroads and are considering filing bankruptcy, it is important that you recognize the warning signs that can help you to make your decision.
Minimum Payments
Many people are well over $10,000 in debt, and they find themselves living paycheck to paycheck while paying just the minimum payments on credit cards and other monthly bills. If you already spend every last penny on bills and necessities with nothing left over, how will you ever find your way out without bankruptcy? Filing bankruptcy in Tyler, TX may be your best option to get out of this vicious cycle of payment and money scrambling. Contact the William Lively Law Firm to learn more about your options and decide which chapter you should file under.
Behind on the Mortgage
Are you on the edge of losing your home due to late mortgage payments? Depending on how far behind you are on the mortgage, this is another situation that may call for filing bankruptcy. Unless you suddenly win the lottery, something that affects lower change and less physical damage than being bitten by a shark, you will certainly need some help trying to save your home. Besides losing your home, imagine what else you might lose. Your home is a valuable asset and investment that you want to hold onto at all costs.
Paying Bills with Credit Cards
Using the same credit cards to pay the same bills every month is one way to quickly add up debt while digging a bigger hole for yourself. Every debt that you pay with a credit card adds further debt by adding interest to the bill that you paid. You should not be forced to pay interest on a water bill, for example, but that is what you do when using a credit card to cover the cost. To avoid this, begin paying for your bills straight from your bank account or with checks, as this is money that you already own and will not accrue interest.
