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The word “bankruptcy” is often fraught with negative thoughts whenever it is mentioned. Never have you ever thought that you’ll one day file for bankruptcy until that day arrives. Some people might only come to the realization that it was the only solution to their current financial woes when it is too late. You can still reach out to an attorney even when unsure of the right steps to take. Here are some of the signs that you need to reach out to a bankruptcy attorney.
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High Credit Balance
A credit card is often seen as an option for financing lifestyle but shouldn’t be a long-term solution. One of the reasons why a lot of people find themselves in credit card debt is because of the ease of settling the minimum balance in the first couple of months. The problem will come in once you start to surpass the balance. The accumulation of such debt could make it unrealistic to pay it, especially when in a tight financial spot. You know you’re in deep trouble when using a credit card to take care of your basic needs. When you find yourself in such a situation, it will be time to reach out to an attorney.
You’re Swimming in Unsecured Debt
A good number of people will go broke because of medical bills. Business-related or divorce debt will be subject to International Debt Collection. You’ll need the services of a Dallas Bankruptcy lawyer when you find yourself with a lot of unsecured debt with no money or plan to pay for them. Chapter 7 can be life-changing as it absolves you from the unsecured debt. As much as it will be possible to file for bankruptcy on your own, the process can be complex and a small error could mean that the debt is not being discharged.
You’re Not Making Enough
You could be gainfully employed but still find it hard to pay for debts while living comfortably at the same time. There are also unpredictable expenses to worry about when creditors are on your back. Sometimes filing for bankruptcy could be the only way out of the financial mess. You don’t want to get money from your retirement savings as it is never a good idea. It is possible that you might not have a lot saved up for retirements and digging into the funds will only make things worse.
Risk of Foreclosure
In the event that you could lose your home or property, it is imperative that you’re getting in touch with a bankruptcy attorney. Once the bankruptcy petition has been filed, any attempts at collection will be stopped immediately. This could be the reprieve you need when creditors are on your neck with intimidation and scare-tactics. A good attorney will prevent foreclosure by taking full advantage of Chapter 13 bankruptcy.
This provides the opportunity to come up with a payment agreement (usually five years). The creditors will not be able to repossess the home during that period. You’ll be able to save your home if you can keep the mortgage payments current. It will not be a good idea to wait up until the last minute before you can get in touch with an attorney.
Harassment From Creditors
Creditors will mostly use debt collection agencies to do the bidding on their behalf. You’re likely to receive calls, letters, and in-person visits to remind you to clear the debt. Such efforts will not only be stressful but also embarrassing. It will only be a matter of time before the creditor files a lawsuit against you. You don’t want it to reach that point as the outcomes are not likely to be favorable.
If any of the mentioned signs are true to your situation, it will be time that you look for a bankruptcy lawyer. You also don’t want to settle on the first attorney you come across. For the best outcome, you’ll want to look for someone that is experienced with bankruptcy cases. A lawyer that has been practicing for a while and can provide references will be a good sign. Make sure to meet with the attorney in person before deciding to work with them.
Conclusion
When you find yourself in debt, it might seem like there is no other way out. Bankruptcy isn’t always the best solution. That is why it is recommended that you’re consulting with an attorney so as to explore the options before deciding on the best way forward.
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