17 Jul What Are The Symptoms of Bankruptcy? Part 1
When it comes to filing for Bankruptcy protection, let’s face it, no one is immune to financial crisis. I have helped Doctors, Lawyers, Certified Public Accountants, Financial Planners, etc. receive the protections that were needed. You would like to think that educated people would not make bad financial decisions, but, a person’s education level sometimes takes a back seat when the debt collectors are calling and the bills need to be paid.
Overall, there are many reasons that individuals have to seek the protections of the Bankruptcy Courts; however, over the years I have put together some problem areas that may help some individuals make better financial decisions. The first problem area is when you are being asked to co-sign a loan for someone. This usually happens in a family situation where the parents or grandparents are asked to co-sign for a car loan.
I cannot tell you how many times I have witnessed people co-signing loans which ultimately brought them to the brink of bankruptcy. When you co-sign a loan for someone, you are accountable for the entire debt if the other party defaults. Accordingly, if you are not in a financial position to take on the obligation as if it was your own, do not co-sign on the contract. In other words, please be very careful about co-signing a loan for someone who may not complete the obligation.
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