Posted on: 7 February 2022
Few things are more frustrating than being overwhelmed by debt. Often, the experience leads to creditors calling you and threatening you with legal action, auctioning your assets, and many other scary things. However, the law considers that sometimes, you can make financial miscalculations and land in debt. Therefore, you can hire a bankruptcy lawyer to help you file and have a fresh start in the process. Here are four signs that it is time to hire a lawyer.
You Have Losses from a Divorce
Your financial situation changes a lot after a divorce. Often, contested divorce cases lead to unfavorable court rulings. The ruling might leave you economically stranded if you were the stay-at-home caregiver. While all family courts will ensure you receive spousal support, sometimes it is not enough to cover the debts. You can speak to a competent bankruptcy lawyer and stop collectors from piling up your stress with their phone calls.
You are Close to Losing Your Home
Inability to pay your monthly mortgage installment is one of the indicators that you are becoming insolvent. However, it does not mean that you should give up on an investment that has taken years to earn. Once you speak to a lawyer, they will help you put measures in place to stop the repossession process and hold the home until you can reorganize your finances. You should contact the lawyer immediately after the bank or lender reports the delinquency. Earlier reporting increases the chances of saving the home from foreclosure.
You Have Massive Medical Bills
Another common reason people end up bankrupt is unpaid medical bills. These are common with people who did not have medical insurance coverage, or their coverage was inadequate when they got the illness or injury. You should consider filing for bankruptcy if you have a massive medical debt because it could lead to asset loss. Call the lawyer if the hospital has already sent your account to debt collectors and they are making harassing phone calls to you.
You are Using Credit Cards for Daily Bills
It is advisable to think about the small and seemingly insignificant spending habits. If your cash flow is so restricted that you need a credit card for groceries, it is time to get a lawyer. The bankruptcy process is long and complex, but it helps reset your finances.
A bankruptcy attorney will help you understand where you stand regarding debt. They will also help you plan how to get out of the trap and start afresh financially.Share