Are you drowning in debt with no way out? Or are you frustrated by constant creditor calls, missed payments, and the fear of losing your assets? If yes, read this blog!
When your financial situation goes out of control, bankruptcy might be the ideal option. But how do you know when it’s best to get legal help?
A bankruptcy attorney can guide you through the process, protect your assets, and stop creditor harassment. Ignoring the signs can worsen the situation.
Here are five signs that it’s time to get legal help now.
1. Dealing with a High Credit Card Balance
Credit cards help finance your lifestyle on a short-term basis. Paying the minimum balance for a few months is convenient for snowballing the total amount. However, paying off the entire balance may be unrealistic once your credit card balance surpasses a certain threshold.
Consider hiring a bankruptcy attorney if you have a high credit card balance and can’t afford to pay it off. Credit card debt is generally unsecured. Therefore, it is dischargeable in Chapter 7 bankruptcy. Your credit card debt will be eliminated once your Chapter 7 bankruptcy is concluded.
2. Overwhelming Unsecured Debt
Medical treatments often lead to overwhelming unsecured debt. Divorce and business-related debt are also leading culprits of tremendous unsecured debt.
Regardless of the reason, you should evaluate your bankruptcy options when you have a large amount of unsecured debt that is difficult to repay. Chapter 7 bankruptcy can give you a fresh start by eliminating your unsecured debt.
3. Borrowing From Your Retirement
Have you borrowed from your retirement accounts to repay dischargeable debts? If yes, use your bankruptcy options to get rid of dischargeable debts.
Hardly anyone saves enough for retirement. So, taking money from your retirement account to repay dischargeable debts is a bad idea. Save time and money for retirement instead of taking years to repay your dischargeable debts.
4. Foreclosure or Repossession
Call a bankruptcy attorney if you are about to lose your home to foreclosure or your car to repossession. Once your bankruptcy is filed with the court, foreclosure or repossession activities must stop. Filing a bankruptcy petition is an injunction against collection activities, including repossession and foreclosure. This is known as an automatic stay in bankruptcy.
A bankruptcy attorney can save your home and car from foreclosure and repossession by filing Chapter 13 bankruptcy. According to Chapter 13 bankruptcy, you can keep your home while you catch up on late mortgage payments.
If you are facing foreclosure or repossession, contact your Chapter 13 bankruptcy attorney immediately.
5. Creditor Harassment
Are creditors calling you all day, sending you threatening letters, or harassing you about certain debts? Call a bankruptcy attorney. Filing bankruptcy will stop credits from harassing you, sending demand letters, or making collection-related communications. This injunction against collection activities is automatic once you file for bankruptcy.
6. You Are Not Eligible for Debt Relief Assistance
Debt is a significant problem for many people. The government has several programs in place to help you eliminate your debt. However, you might not be eligible for debt relief assistance for many reasons, such as:
- Income that’s too high or too low.
- Inability to make minimum monthly payments.
- Having a credit card score that is too low.
If you’ve already applied for debt relief assistance and keep getting turned away, you must hire a bankruptcy attorney now.
