Are You Robbing Peter to Pay Paul? Do You Recognize the Warning Signs of Bankruptcy?

Unfortunately, if you are having financial problems and are unable to make your credit card payments, mortgage payments and even car payments, you need to sit down and calculate how much discretionary income-

Bankruptcy Warning Signs

Bankruptcy Warning Signs

money left over at the end of the month, you have after your household bills are paid.

At Sunshine State Bankruptcy, we suggest that you create a household budget on the bank side of an envelope, if you don’t have a budget, there is no time better to develop one.

What should you put on the back of that envelope? Well, let’s start out with the expenses that you had every month which include:

  • Fixed expenses: rent, mortgage payment
  • Consumer loan and credit card payments
  • Automobile loan payments
  • Auto insurance
  • Household utilities.

Make another list on your envelope of your variable expenses. Those are expenses that you have some control over such as:

  • Dining out
  • Groceries and food
  • Travel
  • Clothing
  • Vacations

On the other side of income list your household income and total it.

After you have created a list of your household income expenses, subtract your expenses from you total income. What’s left is your discretionary income. If that number is positive then you have more money coming in than going out. Now the best thing to do is to figure out how you are going to start paying off your debts. But, if the number is negative, that means you are spending more money than you are taking in on a monthly basis.

That is just one sign that you are going deeper into debt every month.

While bankruptcy may not be right for everyone you can learn more about the financial relief that bankruptcy can provide by ordering your free copy of The Essential Guide to Bankruptcy.

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