What are the early warning signs of bankruptcy?

When people go through money problems, they use traditional methods such as cutting expenses and using their savings. Granted, the present-day economy isn’t perfect, and it’s reasonable to pay late every once in a while.

It does raise red flags if this is recurring since you might be dealing with a possible bankruptcy case. Since prevention is key, let’s take a look at the early warning signs.

You’re late on payments more for more than 30 days.

This is where you have to be realistic and identify the cause of your financial struggles. Ask yourself if you’re overspending or need a job with a salary that matches your lifestyle. It may even be something minor that can be easily corrected.

You’re using your credit cards too much.

Low income is the reason why people take the buy now, finance later route without thinking about how they will pay it back. Keep in mind that it’s meant to be a temporary solution, and using this method frequently will result in long-term problems. If you find yourself covering basic needs such as groceries with a credit card, it’s time to take a step back.

You’re not paying enough.

Interests escalate with time, so you should pay more than the minimum every other time or fall behind due to the increasing monthly credit card bill. Your goal is to erase that debt as quickly as possible.

Your salary has reduced.

Pay cuts, emergencies, and other unexpected events that are beyond your control happen all the time. Please don’t put off seeking help before it’s too late. You’ll probably want to cancel that magazine subscription or stick to generic brands when shopping at the grocery store until your financial situation improves. The smallest details can save you money in the long run.

Bankruptcy is a decision that gives you the relief you deserve. If you aren’t sure that bankruptcy is a decision that you want to make, don’t worry that you didn’t try every avenue, Erika Luna can review your debt settlement and debt consolidation as well.  

If you need an experienced bankruptcy lawyer in the Los Angeles or Orange County area, give Erika Luna a call today for a free consultation. 

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To our clients and community:

The Law Office of Erika Luna is committed to maintaining our employees’ safety and well-being and helping our clients do the same.


While we are closely monitoring the impact of the Coronavirus on our community, we want you to know that our telephone lines are open, and our staff is available to discuss your current case or to consult you on a potential one. 

We are currently offering a contactless bankruptcy process so people can file from the comfort of their homes. The entire process can be completed online and over phone/zoom calls. Clients can sign all paperwork electronically and attend the 341a hearing by phone. 

To arrange any in-person meetings, please call us for an appointment per the firm’s availability. We are taking substantial precautions to meet and exceed the CDC’s and state government’s guidelines for maximum protection. Please also note that your case, whether current or new, can be entirely managed remotely.

We hope you and your loved ones are safe and healthy during these challenging times. Thank you.

The Law Office of Erika Luna

A nuestros clientes y comunidad:

Nuestra firma está comprometida a mantener la seguridad y el bienestar de nuestros empleados y a ayudar a nuestros clientes a hacer lo mismo.

Mientras estamos monitoreando de cerca el impacto que el Coronavirus está teniendo en nuestra comunidad, queremos que sepa que las líneas telefónicas de nuestra oficina están abiertas y que nuestro personal está disponible para hablar sobre su caso o consultar sobre un caso posible.

Actualmente estamos ofreciendo un proceso de bancarrota sin contacto para que las personas puedan declararse desde la comodidad de sus hogares. Todo el proceso se puede completar en línea y por teléfono / llamadas con zoom. Los clientes pueden firmar todos los documentos electrónicamente y asistir a la audiencia 341a por teléfono.

Llámenos para solicitar una cita según la disponibilidad de la empresa. Estamos tomando precauciones importantes con nuestra oficina para cumplir y superar las recomendaciones de la CDC y del gobierno estatal para la máxima protección. Tenga en cuenta también que su caso, ya sea actual o nuevo, se puede manejar por completo de forma remota.

Esperamos que usted y sus seres queridos estén seguros y saludables durante estos tiempos difíciles. Gracias.

La oficina legal de Erika Luna