7 Signs You Need to See a Bankruptcy Lawyer

Whether you’ve lost your job or your business has piled up unimaginable debt, having bankruptcy as a trump card can save your financial life. This doesn’t mean that it’s going to be the magical solution to all your problems; all it provides you with is a second chance to get your things in order. We’ve listed the top 7 signs that indicate you need to see a bankruptcy lawyer.

If you find yourself getting into the pattern of skipping bills to pay another one, you basically have a ticking time bomb on your hand. You may be delaying bankruptcy, but this situation is bound to keep getting worse because you are one wrong bill away from being unable to pay a lot of essential bills. The last thing you want is to skip payments like water or electricity bills, which could dramatically affect the quality of your life. You will need the help of a bankruptcy attorney to navigate this tight spot if you want to make sure that you don’t reach such a point in your financial life.

If for any reason your mortgage lender is putting a lot of pressure on you, it can mean huge repercussions. Losing your job or source of income can threaten your whole lifestyle if you are already in debt. This is when you should go to Chapter 7 bankruptcy lawyers to be able to put a halt to this stressful position. Once the majority of your debt is off your chest, you get a chance to finally catch up with these late mortgage payments.

Unsecured debt can be a hard issue to scrap off your back. When people are in unsecured debt, they’ve usually had to be under it due to medical emergencies, divorces, and many other big-scale problems. In such a situation, filing for a Chapter 7 can ease off this burden and allow you to breathe again. A lot of people feel that their job allows them to carry a considerable amount of debt, but once the stability of a job is gone, unsecured debt can put your back against the wall.

One of the most obvious telltale signs that you need to keep an eye out for is having a high credit balance. It’s not an uncommon phenomenon for people to rush to get the credit cards with the highest purchasing balance, disregarding their own financial power while doing so. People are under the impression that they can buy anything if they manage to afford its installments, but life is, unfortunately, crueler than they’d think. If you happen to have a maxed-out credit card with a very high balance for a while that you know you’d never be able to repay under normal circumstances, you should try to save yourself from a load of trouble by contacting a bankruptcy lawyer to get things in order.

If you keep piling on credit and debt while leaving it unchecked, your creditors have the right to sue you for their money. This is one of the most obvious signs that you need to file for bankruptcy. This is even more common with businesses because the debt that can pile upon a business can be huge, rendering it unable to come up with the kind of money that paying off this debt requires. Depending on the type of business, the business debt can reach deep into your pocket because repaying the debt can require you to sell a lot of what you own. The best way to get out of this situation is to declare bankruptcy through the services of your lawyer.

At first, managing your debt may seem easy when you are quickly dispensing money through your savings or retirement account to take care of it, but the problem exacerbates quickly once your savings accounts are empty. This is a very clear sign that you have a financial problem for so long that it’s going to swallow you whole. Not being able to invest in your retirement or savings account because you can’t shake off the debt can mean a very bleak financial future. Once Chapter 7 is declared, the majority of your unsecured debt will be frozen, giving you a chance to start saving money once again.

If there is one thing known about debt, is its psychological effect on the individual’s mind. There are a lot of psychological factors that can manifest into physiological ailments if the stress isn’t relieved for a long time. Finding yourself trapped in a debt loop can be a serious health crisis, especially if you can’t see yourself getting out of it anytime soon. Once you are in that zone, it’s much recommended to seek a bankruptcy lawyer to help you alleviate some of that stress.

No one wants to file bankruptcy, but sometimes it’s necessary if you want to move on with your financial life without constantly being under the pressure of debt. A lot of people may overlook declaring bankruptcy when they are trying to get out of financial distress, but it’s always important to keep it an option.