Filing bankruptcy in Louisiana is often a last resort, but it can be the best decision. Unfortunately, many people put off making the decision to file. This can lead to further issues with collections and judgments that only further aggravate your finances. The best thing to do is to be aware of the signs that you are heading in a bad direction with your financial situation.
SmartAsset explains that there are certain things about your finances that indicate you do not have control over them. If you notice these things, you should consider filing bankruptcy.
Cannot pay your bills
If you struggle each month to pay your basic expenses, then there is a serious issue occurring. You need to take a hard look at your budget. If you make enough money to afford your expenses but somehow still never have anything left over for yourself, then perhaps your debt is too large. When debt payments take a large portion of your income, it is very difficult to rebound from that.
Behind on secured asset payments
If you are at risk of losing your vehicle or home due to non-payment, then this is a red flag. You do not want to get to the point where you are at risk of losing secured assets. You may be able to keep your assets in a bankruptcy, so it is often better to file before you get to this point.
Lawsuits imminent
If you are facing a lawsuit for a debt, or if there is a good chance a creditor may file one, then you need to take action now. A lawsuit will usually lead to garnishment. You do not want to deal with that, because it will only add to your financial issues.
When you see the signs that you are no longer in control of your finances, it is a smart idea to consider bankruptcy. Filing can give you a fresh start and enable you to get out from under your debt.
