Wauwatosa Wisconsin has a population of more than 45,000 residents. If you are one of those 45,000 who are wondering if you should speak or meet with a Wauwatosa bankruptcy attorney then there are a few key signs or major red flags that might be pretty good indications that bankruptcy is imminent.

An experienced Wauwatosa bankruptcy attorney might refer to the repeated behavior of ‘robbing Peter to pay Paul’ as a sign of difficult times and an early indicator of bankruptcy. This common phrase or saying is used to describe the pattern of taking money from one designated bill to cover another. For example, say a person has enough money for their cell phone bill but suddenly receives a disconnect notice informing them that their electricity will be shut off if a payment is not made immediately. In order to avoid a disconnection or interruption in electric service, the person must rob Peter (cell phone bill) in order to pay Paul (electric company). As a result, the cell phone bill would not get paid that particular month. This unhealthy financial pattern continues in alternating form until the person can no longer afford to balance the juggling act.

Another red flag that bankruptcy is on the horizon is the overuse of plastic. An overreliance on credit cards can have lasting and devastating effects. If a person is constantly exceeding his or her designated credit limit then that is usually not a good sign and a common characteristic of people that a Wauwatosa bankruptcy attorney might end up representing.

Another good predictor of an impending bankruptcy might be losing a job. Having one’s financial stability uprooted by compromising their ability to provide for their family and pay their bills can often lead to bankruptcy. This might occur over a period of time once the savings account has been depleted and the plastic has been worn thin.