Consumer Bankruptcy Early Warning
Early warning for consumer bankruptcies is important because the windows of opportunity for some consumers can be fleeting. They must be recognized and anticipated if they are to be utilized.
The primary early warning sign for consumer is the need to borrow each month in order to make ends meet. For instance a clear indication is If the potential debtor is using his monthly income to pay on credit cards and at the same time charging more on credit cards each month. This is called "shoring up." It is a method to support a better lifestyle than is justified by the current income.
The answer from the perspective of bankruptcy counsel is to admit that changes have to be made, to cease payment of credit cards and at the same time cease all borrowing on credit cards, create a budget that is stable and livable, file a Chapter 7 to discharge the credit card debt and thereafter live debt free.
But first one must be willing to change and willing to invest the time and money necessary to determine of a Chapter 7 is indeed available.