No one embraces bankruptcy with open arms, but the truth is filing for it is often a necessary step for consolidating debt and getting back on track with smart spending habits. Although debt can certainly pile up quickly, there are often warning signs leading up to a financial crisis. If you notice any of the factors below, it’s likely time to take action to resolve your debt.

5 Indicators You’re Headed for Bankruptcy

1. Maxed Out Credit Cards

Hitting the limit on any of your credit cards is a red flag. Whether due to medical bills or other creeping costs, maxing out credit cards means you’re spending more than you can afford. Carrying too much debt can severely impact your credit score, but filing for bankruptcy will help you rebuild credit over time.

2. Inability to Afford Essentials

If your income is going to owed bills and your credit cards have reached their limit, you may find yourself unable to pay for important essentials. From gas to groceries, there are some must-have necessities which should never be compromised. Don’t wait to reach out for help if you find yourself in this scenario.

3. Aggressive Debt Collectors

When debt collectors begin sending notices to threaten you with lawsuits, or if they’ve already attempted to sue you, it’s time to seek professional help. Going bankrupt can get creditors off your back as you regain your financial footing, thereby allowing you to reestablish smart spending habits without hassle.

4. Missed Payments

Missed rent checks or mortgage payments could get you evicted, while failing to pay for your vehicle could result in repossession. If you’ve canceled all nonessential subscriptions but still can’t afford must-have housing and utility services, it usually signifies an impending financial crisis.

5. Ineligibility for Debt Management Plans

In some cases, working with a debt counselor can help you work out a plan to pay bills back on a schedule agreed upon with debt collectors. If you no longer qualify for debt management plans, however, don’t turn to high-interest loans. This will only set you back further and add to the debts you owe.

If you’ve spotted any of the signs of impending financial crisis, the professionals from Cecil & Cecil, PA can help. Serving the High Point, NC community, these attorneys can help you navigate the process of filing for bankruptcy and have over 36 years of combined experience. Explore their services in greater detail online or call (336) 883-8383 to schedule a free bankruptcy consultation.