Staying on top of your finances is a good idea to not only keep yourself from getting into trouble but also to be able to recognize when you are struggling. Sometimes if you catch the signs of financial issues early, you can turn things around. However, you need to be able to see the signs and know what they are so you can act accordingly, which may include filing bankruptcy in Indiana.

According to Dave Ramsey, catching the signs that you are headed towards bankruptcy can do you a world of good. Even if you end up filing, you will be able to do so at a much earlier date before you are facing judgments or aggressive collections. Remember that filing bankruptcy is not a bad thing. Sometimes it is the best answer, but you do not want to file too late.

It is important that you watch your spending habits. You should have a budget. If you do not, then this is a troubling sign. You cannot manage your spending if you do not budget your expenses and income. You may also notice that you have a very hard time with not overspending. If you cannot get that under control, then you will have problems in the future.

Another sign is that you are living beyond your means. Buying a house or vehicle that is beyond your affordability level is asking for trouble. This also includes spending money you do not have by using credit cards too often. You will need to make some harsh choices if you find yourself in this situation.

These things are all situations you cannot maintain for the long term. So, you either need to make serious changes or it is time to give yourself a reset by filing bankruptcy. This information is for education and is not legal advice.