Bankruptcy - More Signs That You May Be in Trouble.
Bankruptcy attorneys all over the country are reporting that
their business is up 25-50% over last year. The reason? New
bankruptcy legislation is set to take effect later this month,
and the laws are much stricter than in the past. That may be the
case, but the fact that tougher laws are coming doesn't mean
that everyone should rush out to declare bankruptcy. Still, many
people are undoubtedly wondering if their own situation warrants
such a drastic choice.
Here are a few things to consider
when deciding if you should file:
You are writing
checks when the money isn't there - This is something that most
everyone has done from time to time. Your bill is due on
Tuesday, but you don't get paid until Friday. So you write the
check, put it in the mail, and hope that by the time the check
clears, you'll have your paycheck. There are a couple of
problems with this. The time it takes for a check to clear is
much shorter than it used to be. Checks can often clear
overnight, and if the money isn't there, you can be assessed
late fees by both your bank and the payee. As a bonus, we should
point out that it's illegal to write a check when you know that
the money isn't in your account.
Are you paying
for groceries with credit cards? We don't mean doing so when you
forgot your checkbook; we mean doing so when your checkbook is
empty. Groceries are a recurring expense. You need to eat each
and every month, so you should have money set aside for food. If
you don't', and you find yourself using your Visa card to buy
your milk, you've probably got a serious
problem.
Your credit cards are maxed out and you
are applying for new ones - When your cards are full, it's time
to pay down the balances. If you are applying for still more
credit because the cards you have are full, you're in trouble.
More credit won't make the problem better; it will undoubtedly
make it worse.
These are just a few things that
might be warning signs of serious financial trouble. If you find
yourself doing one or more of them on a regular basis, it's time
to take a serious look at your total financial situation. Now
might be a good time to discuss this with either a credit
counselor or a bankruptcy attorney. And nothing good comes from
waiting, so do it soon.