How Can You Identify Financial Warning Signs?

People who file bankruptcy usually got into debt two ways: first gradually — and then suddenly. The sooner you can spot the warning signs, the better off you will be.

North & Sedgwick Law is here to answer your questions about debt problems and help you find a solution. The firm's bankruptcy lawyer, Paul Camarena, serves individuals, families and businesses in Chicago and throughout the surrounding areas of Illinois.

Bankruptcy warning signs include:

  • Making minimum payments on credit cards: If you are making minimum payments on your credit cards each month, you are only digging yourself deeper into debt.
  • Juggling bills: If you are putting off some bills in order to pay others, you are not dealing with the problem of having more debt than you can pay.
  • Dipping into retirement savings: If you are dipping into retirement savings to pay credit card bills, you are robbing from yourself to pay the credit card company. Retirement savings are protected when you file bankruptcy, while credit card debt can be discharged.
  • No health insurance: Some people drop health coverage because they can no longer afford the premiums. However, without health insurance, you are one illness or injury away from bankruptcy.
  • Creditor harassment: If bill collectors call you more often than your family members, it's time to do something about your debt.
  • Threats of foreclosure or repossession: If you are behind on payments for a secured asset such as a home or a car, the bank may take the asset.
  • Tax arrears: The IRS does not wait patiently for taxpayers to get caught up on tax debt. You could end up facing costly penalties and tax liens.

Learn more about the benefits of bankruptcy.

Contact Our Chicago Bankruptcy Law Firm

If you are experiencing any of the warnings signs of bankruptcy, take advantage of a free initial consultation with attorney Camarena to discuss your particular situation. Simply call North & Sedgwick Law at 312-878-8429 to arrange an appointment. You can also contact the firm via email.

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†The firm is a debt relief agency and helps people file for bankruptcy relief under the Bankruptcy Code.