4 Signs That It’s Time to Speak to a Bankruptcy Lawyer

Anyone can have financial problems in today’s economy. A job loss, medical costs from a serious illness any other type of family crisis, or a business reversal can lead to expensive bills and an inability to pay on time. Bankruptcy is a legal procedure that offers a method of dispersing debts that cannot be paid, so you can have a fresh start with your finances. It is often the best way to reset your financial stability when you become overwhelmed with expenses. Here are 4 signs that’s time to speak to a bankruptcy lawyer.

1 – Your Bills Exceed Your Ability to Pay

If the bills keep coming in, and you find you have insufficient income to pay them, it may be time to talk to a bankruptcy lawyer. An avalanche of bills can eat into your expected income quickly, making it difficult to meet ordinary expenses in day-to-day life. You may try getting additional income, but can never quite catch up with the onslaught of demands. It can bring on a feeling of hopelessness and constant struggle. When your bills exceed your ability to pay, month after month, you may need to consider other options for restoring your financial stability.

2 – You’re Getting Frequent Collection Calls From Debtors.

Collection companies can be relentless. Even though they are restricted by law from harassing people at certain times of the day, the number of phone calls and messages can become upsetting and can make you feel that you are being harassed. The stress and wear and tear on your emotions can be alleviated through bankruptcy proceedings, so you can restore your life to a normal balance.

3 – You Use Credit Cards for Basic Necessities

If you are using your credit card to cover normal expenses, such as groceries, utilities, and insurance, it’s a sign your income is insufficient to cover your most pressing expenses. Doing this for a period of time only adds to your indebtedness and can undermine your credit score, so that you end up paying more for things you need on a regular basis. Eventually, you will max out your credit cards and lose your ability to pay the monthly payments.

4 – Your Car is Being Repossessed or Your Home is in Foreclosure

Your vehicle is an important lifeline that allows you to work, take care of your children, and get to medical appointments. If your vehicle is repossessed due to non-payment of your car loan, you begin to have even more difficulties in your life because of your inability to pay your debts. Similarly, if you fall behind on mortgage payments due to your indebtedness, you may lose your home through foreclosure. Bankruptcy can help to stop the foreclosure process, so you can retain as much of your possessions as possible through legal protection afforded by the process.

Although bankruptcy can have temporary negative effects, it provides options for resolving your debt and re-establishing your financial viability. Your bankruptcy attorney can provide detailed information on what you need to know about how the proceeding can help you get back onto a stable financial footing.