Freirie and Gonzalez, P.A.


(305) 826-1774



When you file for bankruptcy, the court will issue you an order of relief. This is something that can help people who are in debt. However, nobody wants to be in this situation. Filing for bankruptcy is one of the most defeating things a person can go through. Unfortunately, there is no other option when you are drowning in debt. Having said that, it is not uncommon for individuals or businesses to face financial difficulties that can lead to bankruptcy. What makes matters worse is that you may not realize you’re on the verge of bankruptcy until it’s too late. This is unfortunate because bankruptcy is avoidable. You can save time and money if you address the underlying issues as soon as possible. For this reason, we have decided to talk about the six signs you are heading toward bankruptcy.

1.     You’re Already Behind On Your Payments

This is the most fundamental indicator. If you are struggling to pay off your debts each month, this means that there is something wrong. However, you need to consider your situation carefully. Before you call a bankruptcy lawyer, you should check your payment history. Everyone can have a bad stretch from time to time. If you only recently stopped being able to pay off your loans, you shouldn’t panic right away. We suggest waiting for at least a couple of months, and if you find that you cannot get the necessary funds to pay off your loans, then it is time to look for help. 

A man holding an empty wallet.

One of the first signs you are heading toward bankruptcy is if you are having difficulty repaying your loans.

That being said, you must also be cautious not to wait too long. If you cannot make your payments on time, this may indicate that your debt has become too large. It’s especially concerning if you cannot meet key commitments like mortgage, rent, or car loan payments on time. According to research, Florida has the third-highest auto repossession rate, trailing only Arizona and Nevada. Credit-card bills are another indicator of a problem, but we’ll get into that later on.

2.     You Are Not Eligible For Debt Management

Some people seek help by enrolling in credit counseling or debt management programs. These are programs in which a corporation or nonprofit organization works on your behalf to prioritize payments, pay them on time, and contact creditors to seek relief. To be eligible for these programs, however, you must have assets or, more importantly, income. If you do not have them, you will be unable to enroll. Furthermore, some organizations of this type investigate their potential clients’ habits and lifestyles. For example, if you don’t have a problem with assets or income but have a problem with gambling or another addiction that is draining your finances, you may be unable to enroll in one of these plans. Experts from Bright Futures Treatment Center Florida also believe that in situations like this, it is vital to treat the underlying problem in your life, not just the symptoms.

3.     You Are Not Eligible For A Home Equity Loan

You can use a home equity loan to pay off various types of debt. You could, for example, use this loan to pay off some of your credit card debt. However, keep in mind that the interest rates on this loan can be pretty high. This is an excellent strategy, but only if you are willing to give up your credit card. Or, at the very least, until you are completely debt-free. You could be much worse if you haven’t resolved your other debts after using your home equity.


However, if you cannot qualify for this loan, your financial situation is likely dire. It would help if you also considered whether it is worthwhile to incur additional debt to get out of another. The goal of bankruptcy is to help you get completely out of debt. If you can’t even apply for a home equity loan, perhaps it’s time to consider another option.

A toy house next to a set of keys.

If you cannot obtain a home equity loan, something is likely wrong.

4.     You Have Exhausted Your Credit Card Limits

When we look at recent examples of bankruptcies, one of the most important markets has been credit card debt. If all of your credit cards are maxed out, your chances of avoiding bankruptcy are significantly reduced. This is because using your credit to pay off loans is a desperate measure many struggling people resort to. However, when you reach the maximum limit on your credit cards, you will ultimately reach a point when you cannot boost those maximums further. This means that you won’t be able to get approval for other sorts of loans. Another warning flag is depending on credit cards to meet basic needs like food or petrol since there is no other source of income.

5.     You Are Considering Bankruptcy

It is probably too late if you are so deep in debt that you are considering bankruptcy. As we’ve mentioned in the beginning, bankruptcy is tricky, and you never think about it until it’s too late. In this situation, the best thing you can do is think about why and how you’ve gotten into this situation. If it is due to poor financial decisions, you can fix that by simply being more careful with money in the future. However, if the problem is due to some addiction, it is very easy to find a long-term solution that will change your future. There are many healthy coping mechanisms for successful recovery, all of which could help you avoid bankruptcy. Thus, find ways of dealing with this problem as soon as possible. 

A woman is stressed out in front of her computer.

If you believe you will need to declare bankruptcy, this strongly indicates that you are on the path to doing so.


6.     You’ve Taken Out High-Interest Loans

And the last of the six signs you are heading toward bankruptcy is taking out more loans to pay off your current ones. It’s bad enough to use credit cards to bridge short-term liquidity shortfalls, but resorting to payday loans or vehicle-title loans might be even worse. If you find yourself so desperate that you are ready to take out a loan that can trap you in a debt cycle, where you’re rolling over one loan to the next, it is an excellent sign that you have a problem on your hands.


Freire & Gonzalez is an attorney’s office where the attorneys are involved with their clients from beginning to end. You, as the client, will not be passed off to secretaries or paralegals like at other bankruptcy law firms. The attorneys will meet with you, will return your phone calls, and will answer your questions. We provide services in English and Spanish.

Our lawyers will answer any bankruptcy question you might have during the free consultation. To request a free consultation, please contact us at 305-826-1774. Please browse through our website, read our bankruptcy FAQ and see if our firm can help you resolve your financial issues.  Contact Us at our locations:

Bankruptcy Lawyers Miami FL

Bankruptcy Lawyers Fort Myers FL

Bankruptcy Lawyers Hialeah Myers FL

Bankruptcy Lawyers Cincinnat OH

Bankruptcy Lawyers Blue Ash OH

Bankruptcy Lawyers Hyde Park OH

Bankruptcy Lawyers West Chester OH

Bankruptcy Lawyers Northern Kentucky

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