Bankruptcy Attorney - 5 Signs You May Need to File

Hiring a bankruptcy attorney is a big decision, just as filing Chapter 7 or Chapter 13 will be. However, as an individual who is struggling to pay his or her debts, it may be necessary simply to file and to move on with your financial life. Knowing when to do this can be hard, and your lawyer will help you to make that decision. He or she may even offer other services, such as counseling services and debt settlement services if filing Chapter 7 or Chapter 13 is not the right option for you.

When You Should Call

There are some situations when it just makes sense to call on a bankruptcy attorney. The following are a few examples of when you need to do this.

• You are unable to pay your bills and it is causing you to default on your secured loans, especially your mortgage. Losing your home may be the biggest risk of not getting your debt under control. However, it is always possible that you can get out from under this even if the foreclosure process began, if you file.

• You are avoiding creditor phone calls and becoming more and more worried about your debt. Anxiety and stress add up quickly when you cannot pay your borrowed money back and you want to. It is not always as easy as getting another job or making more money. Sometimes, you may just feel unable to move forward on your debt fast enough.

• Ask yourself if you could pay off your debt in full within five to seven years. If not, it may be best to contact a bankruptcy attorney instead. This professional can get you back in control of your finances within a few years. Even though your credit score will take a serious hit in the first few years after filing, it is likely to begin to improve right after that if you work on paying your debts back on time after filing.

• You are facing judgments, wage garnishments or other legal action because you have not paid your debts. A lender can take you to court if you simply ignore them and in doing so they are likely to spend a lot of money ensuring that you end up losing your assets in order to get paid.

• You just need a fresh start. Filing for Chapter 7 will wipe out your debt obligations for you, if you qualify. In Chapter 13, you will repay some of the debt you owe over a three to five year period. Once you talk to a bankruptcy attorney, you will quickly learn if you qualify and which method the right for your needs is.

Take the time to consult with a bankruptcy attorney before you make the decision to file or not to. Your attorney can give you advice about when it may be helpful and when you simply should move forward right now. It is a good idea to focus constantly on the future and for many that means getting help out of debts from the past.