Did you know that total bankruptcy filings rose 14.2 percent, with increases in both business and non-business bankruptcies, in the twelve-month period ending December 31, 2024, according to the United States Courts?
If you find yourself weighed down with debt, you owe it to yourself to think of the options that bankruptcy provides you. But, how do you determine when it’s time to consult a bankruptcy attorney? Let us go over the scenarios that necessitate the expertise of a lawyer.
Recognizing the Signs of Financial Distress
When you are in financial trouble, you’re surely feeling anxious and restless. It’s hard to concentrate when all you can think about is how much money you owe.
You should be anxious if you have to use your credit card to buy things you need or pull money out of your savings to pay for everyday bills. Are you skipping payments or struggling for food or shelter?
These are signs that you might be in a financially unstable situation. It is imperative to acknowledge your situation as soon as possible so you can act on what to do. Ignoring what is happening will not make it go away.
According to a bankruptcy lawyer from https://www.steelebankruptcy.com/, the immediate benefits of filing for bankruptcy if you qualify for it are: having the ability to stop foreclosure proceedings, putting a stop to creditors harassing you, ending garnishment of your wage and the ability to recover a vehicle that has been repossessed.
Understanding Your Debt Situation
Having an understanding of your debt situation would help you reach favorable decisions toward your future. List all your debts, including credit cards, loans, or any other responsibility. Note the amount of debt, interest rate, and monthly payment. This will provide you a thorough idea of what you are dealing with.
Calculate your income versus your expenses to check for shortfalls. Are you always short? If so, then deeply analyze your expenses and ways they can be minimized.
Don’t forget to check your credit report for discrepancies. When you have a good idea of your credit score, then your options become clearer.
According to Michael J. Thompson Attorney At Law, you should be aware that not all debt can be discharged by filing for bankruptcy. Before making a decision on how to go about handling your debt, it is crucial that you speak to a bankruptcy lawyer.
The Impact of Creditor Harassment
Hearing creditor calls or reading their messages might be too much to handle. If people constantly bother you and ask you to pay, it will make you more stressed and may stop you from finding the right solution to your financial problems.
The fear of legal action or garnishment may make you feel very anxious or helpless, which could be bad for your health. You need to know that you have rights and that the Fair Debt Collection Practices Act says that harassment is against the law.
Hiring a bankruptcy lawyer can alleviate your stress and your lawyer can help stop the harassment you’re receiving from creditors.
How a Bankruptcy Lawyer Can Assist You
If you have explored your options and come to realize that bankruptcy remains the best solution for you, then a bankruptcy attorney may make a significant difference in the process.
He or she will explore the complicated legal factors with you, explaining your rights and responsibilities. The lawyer then helps you decide what type of bankruptcy applies to your situation, be it Chapter 7 or Chapter 13.
Your lawyer will prepare all the paperwork and file it promptly to avoid any mistakes that could delay the proceedings. He or she will also try to work out better payment plans or lower your debts with your creditors.
With a lawyer by your side, you can go through bankruptcy with confidence and make it less stressful.
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