Getting Divorced? Know When You Are In Credit Trouble

Married couples facing with divorce may be carrying debt load and having trouble with collections, of which they may or may not be aware of. This can have a domino effect, jeopardizing credit worthiness.

Sometimes, finances can get out of control. During these times, it might be wise to keep the following list handy so you understand some of the signs that your credit is out of sorts.

1. You are unable to make minimum payments on your credit cards or only send minimum payments into your credit card companies to repay your loans.

2. You do not calculate a budget on a monthly basis.

3. You were refused credit or a loan by a bank.

4. You have balances on store credit cards,

5. You use credit cards for daily household items, such as food or gas.

6. Creditors have contacted you for payments on bad debt.

7. You do not have a savings of at least two month’s living expenses in the bank.

When the above mentioned conditions occur, it does not mean that there is no way out. You can refrain from future spending and pay debt off gradually over time. You can take on a second job to pay off debt sooner. When these strategies don not work, you may want to consider bill consolidation bankruptcy or traditional bankruptcy.

Bankruptcy options ma not viable when your credit is out of control. Bankruptcy may be a way to begin to rebuild your credit. You are the only one who can decide if bankruptcy is right for you. Your lawyer can help guide through the options. Be certain to inquire about both Chapter 7 and Chapter 13.Chapyer 13 refers to debt consolidation bankruptcy.

If you are in need of a lawyer, contact Burton Padove at 219-836-2200.