People often ask “are there signs that I am headed for bankruptcy?” While there are no fool-proof signs, people may find that they are headed toward bankruptcy if:
§ They have problems sticking to a budget or have not created a budget
§ Lack control over their spending or are chronic over spenders
§ They have not established an emergency fund
§ They have a house that is expensive and they are finding it difficult to pay their mortgage
§ They have excessive credit card debt and continue to add to that debt
Finally, it is important to know that many people who have to file for bankruptcy do so because of unexpected life circumstances, such as a serious illness in the family or unexpected job loss.