Are you wondering if it’s time for you to hire a bankruptcy lawyer? Keep reading for 5 signs that you should hire a bankruptcy attorney.
The number of Americans struggling with debt is on the rise. In fact, the average American has just over $90,000 in debt. That’s a lot of debt to be lugging around!
What’s worse, when you have that much debt hanging over your head, it can feel as though you’ll never be able to dig your way out of it.
To find some respite, many people turn to an experienced bankruptcy lawyer. Here are five signs it might be time to file for bankruptcy and work with a lawyer.
When to Hire a Bankruptcy Lawyer
1. You’re Drowning in Medical Bills
Most of us are familiar with how expensive a trip to the hospital can be. And, if that hospital visit involves a trip to urgent care or an overnight stay, the price skyrockets.
This is true even for individuals who have good insurance policies.
The result is that when a patient leaves a hospital or recovers from life-threatening illnesses, they’re left with huge medical bills that they have no hope of paying off.
And, if the medical bills are the result of a loved one’s illness, the situation can be even worse. You may have had to quit a job to care for a loved one, leaving you with staggering bills and no way to pay them.
When medical bills are involved, contacting a bankruptcy lawyer can be a good way to get your finances under control. A good lawyer will be able to help you properly file for bankruptcy so that you can put an end to your medical bills once and for all.
2. Your House is on the Line
When you’re struggling with rising bill payments and mounting debt, it can become difficult to pay your mortgage. When you miss mortgage payments, the bank can take away your home as a way to cover your debt.
On top of that, if you own your house but owe the bank a large amount of money for another debt, your home could be used as collateral damages. The bank can claim your home to cover your unpaid debt.
If you’re being threatened with this type of action, it’s time to loop in a bankruptcy lawyer. Speaking with a bankruptcy lawyer can help you develop a plan that will enable you to keep your house and to pay off the bank another way.
Plus, a bankruptcy lawyer may be able to help you find other ways to reduce your bills. That will put you in a position to get your mortgage payments back on track.
3. You Can’t Get Payments Under Control
Fees are one of the biggest issues people struggling with debt encounter. Credit cards and loans all have built-in fees, such as monthly fees or late fees.
The result is that over time, debt can easily build up as you’re required to pay more and more money to cover all the fees. Pretty soon you’re facing an overwhelming amount of debt that seems impossible to eliminate.
Plus, debt accounts aren’t the only accounts that can build up fees. Even checking accounts come with all kinds of fees, such as bounced check fees and overdraft fees.
To get ahead of this problem, you can call a bankruptcy lawyer to help you file for Chapter 13 bankruptcy or another kind of bankruptcy.
4. You’re Struggling With Divorce Losses
We often hear stories about women and men coming out of divorces as millionaires due to their settlements. However, what about the other end of the spectrum?
Sometimes, a divorce can cause a huge blow to a person’s finances. This is especially true if they’re required to pay hefty legal fees or cover childcare expenses.
On top of that, following a divorce, some people find that they have to re-enter the workforce after previously not working. They could also find that they’re stuck with large child support fees.
No matter what the situation, following through with payments after a divorce can be tricky. If you’re in this situation, a bankruptcy lawyer can help you figure out how to manage your finances and get out of your difficult position in the aftermath of your divorce.
5. You’re Not Eligible for Debt Relief Assistance
While debt is a large problem for many people, the government has several programs in place to help consumers eliminate their debt. These could be anything from loan consolidation to credit counseling services.
However, some people aren’t eligible for these services. This could be for any number of reasons, including:
- Income that’s too high or too low
- Inability to make minimum monthly payments
- Having too low of a credit card score
No matter what the issue is, not being eligible for debt relief programs is a common issue. If you’ve already applied for debt relief assistance and keep getting turned away, it might be time to hire a bankruptcy lawyer.
Doing so can help you properly file for bankruptcy and to get out of a sticky situation with a little extra help.
Partner With a Bankruptcy Lawyer Today
Knowing when it’s time to declare Chapter 7 bankruptcy (or any type of bankruptcy for that matter) is important. And, with these five signs, you’ll know when it’s time to make that call.
Have you already determined that you’re in need of a bankruptcy lawyer? Get in touch with us at 402-415-2525 and we’ll find a lawyer to help you work on your case.
