Nobody wishes to endure the stress of filing for bankruptcy. However, sometimes it becomes necessary to save you from further financial ruin. There are lots of issues that can make you bankrupt. If you're experiencing any of them, it's wise to hire a bankruptcy attorney. This article discusses three signs indicating it's time to hire these lawyers.
Your Debt Is Overwhelming
There are many reasons why people get into debt. It could be because of a divorce, an illness or injury that limits their ability to work and earn money, losing a job, or just bad decisions. If these debts overwhelm you and you can't repay them, you need a bankruptcy attorney.
These lawyers will do a thorough review of your income and expenses. If the bankruptcy is filed as an individual filing, they'll look at all sources of income, including social security benefits and retirement plans, such as 401(k)s. They will also consider any dependents you have who rely on your support to determine whether or not you can afford to repay the debt. After determining all that, they will help you develop a repayment plan. This may include selling your assets, such as your home or car, to repay your debts or asking for support from your family members.
You're Constantly Paying Late Fees or Overdraft
Paying late fees can significantly increase your debt levels and further cause financial strain. These fees can be tough to avoid if you're struggling with money management and your income is unstable. They can make it challenging to pay bills on time.
If you are repeatedly paying late or overdraft fees, consider hiring a bankruptcy attorney. They will help eliminate them from the picture for good by filing a bankruptcy petition on your behalf. This petition will help you obtain a fresh financial start and a clean slate. These attorneys will also look at your current loan agreements and recommend different options available to you, such as debt consolidation or refinancing.
Your Credit Cards Are Maxed Out
If your credit cards get maxed out, you'll not be able to cover your expenses. Your credit card company may also sue you for being unable to pay them. A bankruptcy attorney can help get rid of credit card debts and protect your assets from creditors. They will negotiate with the creditors and work out terms for payment that are more affordable for you. If the negotiations don't work, they will represent you in court and present a strong case for you.
Bankruptcy attorneys can help you with many problems that may seem to be insurmountable. If bankruptcy is a solution for you, hire an attorney instead of representing yourself because they'll help you resolve your bankruptcy issues quickly.