There are three major warning signs that could mean you will need to file forbankruptcy soon.

The first is not having medical insurance or incomplete coverage. One out of every five bankruptcy filings lists medical bills as a reason for applying for bankruptcy.

Another common sign is maxing out on all of your credit cards. If you are unable to pay off your current credit card bills and are continuing to charge more than you can pay back, you are in danger of needing to file for bankruptcy. You should never be using more than 30 to 40 percent of your available credit at one time, otherwise you risk financial problems. You should save your credit to use for emergencies like an illness, divorce or job loss.

And finally, an over-reliance on home equity loans is another common problem. If you cannot afford to make the equity payments without worry, you shouldn't be refinancing your home.

Planning to file for bankruptcy?  Don't wait to contact our law office to get help from a Houston bankruptcy lawyer.