Personal Bankruptcy - Are You Accumulating Too Much Debt?   

Not everyone who files for bankruptcy here in North Carolina can be considered a bad person or a deadbeat. Sometimes bad luck or a few poor choices is the overriding factor in accumulating more debt than you can handle.

Unexpectedly losing a job, a severe illness or just plain overspending can all lead you onto the long road of too much debt that can ultimately leave you struggling to survive and a need to file bankruptcy in order to make a fresh start.

If you think that you may be headed toward bankruptcy look for these warning signs to get control over your finances before it's too late.

1 - Too Much Credit Card Debt
Credit card debt is the biggest financial problem striking American households today. With the average credit card debt now reaching $10,000 or more, it's no wonder that today's consumer is feeling squeezed. If you're only able to make the minimum payment on your current income, its probably time to lock those credit cards away!

2 - Living Paycheck to Paycheck.
While it may not be possible to stop living from paycheck to paycheck, keep in mind that any bump in your financial road could send you crashing. The average American household has less than $1,000 in savings, leaving them open to financial ruin in the event of a sudden layoff, illness, or other major catastrophe. Do your best to live under your means in order to save for those unplanned emergencies that can potentially devastate your finances.

3 - Overusing a Home Equity Line of Credit
It can be extremely tempting to use your home equity line of credit to payoff credit cards, finance some new furniture or get a better vehicle. DON’T. You should avoid the temptation. Remember, your house is at stake! Any type of credit that uses your house/property as collateral is risky. It is almost never a good idea to mortgage your house in order to pay credit cards or unsecured debt!

4 – Cashing in your IRA or 401K in order to pay credit cards or medical bills.
You can almost always keep retirement accounts even when you file Bankruptcy.  Credit cards and medical bills are debts you can almost always get out from under by filing for Bankruptcy or Debt Relief.  It rarely, if ever, makes sense to sacrifice your retirement account (and in the process create debt to the IRS!) in order to pay unsecured debt!

5 – Settling a debt
Many people try to get creditors to accept less than the full amount owed in satisfaction of the debt.  While this may be (or seem) like a good idea, unless it is done through the Bankruptcy Courts, you will owe taxes to the IRS on the amount of the debt forgiven!

6 – Property Foreclosures or Vehicle Repossessions
If the bank is ready to foreclose on your house or the repo. man is about to swipe your car while you’re asleep, then you're already in serious financial trouble, and bankruptcy may be just around the corner. Now is the time to get help from a Certified Bankruptcy Debt Relief Attorney to gain better control of your financial life and avoid more serious consequences.  Repossessions and Foreclosures can be stopped!

If you're considering bankruptcy as an option, please visit our website at  The Debt Doctor then call our office (919) 878-5125 to schedule a free consultation today.

A Federal and State Approved Agency providing DEBT RELIEF under Federal Bankruptcy Law for over 30 years!

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