When you should get a bankruptcy attorney?

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A bankruptcy lawyer is an attorney who specializes in either commercial or consumer bankruptcy. A bankruptcy session involves a firm or individual who is unable to repay outstanding debts in time. Finding a bankruptcy attorney isn’t a simple task due to stiff competition. Therefore, there are some factors you should put into consideration when looking for an ideal bankruptcy lawyer. Some of these factors include experience, reputation, cost, and quality of services. An experienced bankruptcy lawyer will find out more information about the case to improve your chances of winning the case. In addition, a bankruptcy attorney will file the required paperwork and notify appropriate people. There are signs that you may need a professional bankruptcy lawyer. Below are signs that you need to get a bankruptcy attorney.

1. You’re About to Lose Your Home

If you have a poor credit score because you’re deeply into debt, you’ll be unable to make your outstanding mortgage payments. Note that if you don’t adhere to rules and regulations pertained to the contract, the bank won’t hesitate to take your home. If you’re in this situation, the best idea is to file for bankruptcy. A bankruptcy lawyer will analyze and evaluate the situation to come up with a genuine legal verdict. The bankruptcy attorney will help you understand more about mortgage loans. You’ll, therefore, weigh the options that a bankruptcy attorney will give you. In addition, a bankruptcy attorney will look for fundamental information in the contract to help you win the case in court.

2. You Need to Recover Losses Incurred as a Result of Divorce

There are numerous reasons why people opt for divorce: abuse, lack of commitment, unrealistic expectations, poor communication, and infidelity. A legal divorce can consume more money than you anticipate. For instance, a divorce will force you to hire a professional divorce lawyer and provide monthly child support. If you’re in this situation, it’s important to consult an expert bankruptcy lawyer with more years of experience. An ideal bankruptcy attorney will build a concrete case to show that you aren’t eligible to pay losses incurred during the divorce session, particularly if you’re the defendant. On the other hand, if you’re the complainant, the bankruptcy lawyer will help you stand a chance of recovering incurred losses and avoid hefty fines. Avoid representing yourself in a bankruptcy case because you’ll have higher odds of making mistakes. In addition, the do-it-yourself route can cost you more money compared to hiring the best bankruptcy attorney.

3. Overwhelming Unsecured Debt

There are various reasons why you may be unable to settle your outstanding debts. For instance, you may spend beyond your means due to uncontrolled reasons. If you’re in a situation whereby you can’t handle debts, it’s high time you consider hiring the right bankruptcy attorney. An ideal bankruptcy lawyer will help you get a new start. This is because the consequences of debt can ruin your financial life and your overall well-being. This is because your mind will think about the outstanding debts throughout. The anxiety and worry about how you’ll survive in terms of paying your bills can cause mental issues, such as traumatic stress and depression. Mental health plays a significant role in improving your productivity. Therefore, mental health problems can cause unhealthy relationships, thus leading to divorce. Hiring a bankruptcy attorney will help you break the cycle and start afresh.

4. You’re Constantly Paying Late Fees or Overdraft

Most financial institutions will charge interest and late fees if you make the payment on a later date. This is the main reason why your debt will accumulate at a higher rate. In addition, when you’re unable to make at least the minimum payment on your credit card, you’ll incur some fees. These fees increase the amount of money to be paid in the next period. In other terms, when you don’t have adequate money to cover a bill, you’ll incur bounced check fee. At this point, you need a professional bankruptcy attorney to help you understand more about the late fees.

5. You Have to Use Your Credit Cards for Daily Expenses

At some point due to certain reasons, you may be tumbling into unrecoverable debt, especially if you don’t have any income to pay for your bills and daily expenses, such as utility bills and groceries. If you opt for credit cards because you have insufficient money in your account, you’ll be making choices that won’t sustain your needs unless you find a way of earning. Consulting a bankruptcy lawyer is important because you will get professional advice on how you can manage the situation before it becomes worse.

6. Your Finances Are Heavily Used in Settling Medical Bills

Medical bills can pile up quickly, even if you have health insurance. If you’re involved in an accident or you’re ill, the medical practitioner bills you for every consultation, pill, and piece of equipment used for your care. Most people will recover and find out that the money incurred in terms of medical bills is more than what they can afford. At some point, you may leave your job to care for your sick loved one. In this case, there’ll be accumulated family medical bills because you don’t have a source of income. The hospital may send your accounts to a collection agency that’ll harass you to make the payments. At this point, you may need a bankruptcy attorney who will help you navigate through the entire process.

7. Borrowing from Your Retirement

It’s not a great idea to borrow money from your retirement account to repay outstanding debts. You should use your money and time to save for your retirement.

8. Creditor Harassment

At some point, creditors will harass you by sending threatening messages. Therefore, it’s important to hire a professional bankruptcy attorney with enough experience in this field. Filing bankruptcy will help you solve these forms of harassment. This is because the creditors won’t have the ability to make collection-related communication, send demand letters, and make collection calls.

Conclusion

Other signs that show when you should get a bankruptcy attorney include debt-caused stress, facing a lawsuit, threat of foreclosure, and skipping bills to pay others.