There are many people out there who suffer from financial struggles, and their situation is so bad, that bankruptcy is required. If you’re not sure if you need to file for bankruptcy, then you might need to talk to a bankruptcy attorney. Attorney Jed Shaw can help and guide you in this matter, and will tell you all of your options. Don’t listen to people who don’t have expertise in this field, their pieces of advice might get you to a worse place.
We’ve written this article to help you understand the signs you need for filing for bankruptcy.
You have a high credit card balance
A credit card can be very useful, if you want to finance your lifestyle, but for a short period of time. And it’s easy to pay the minimum balance for a few months. But once that balance surpasses, it’s not so fun anymore. And paying the entire balance is not realistic. If your credit card balance is high and you cannot pay it off, then you might need to get contact of a bankruptcy lawyer.
Also, if you’re using your credit card to have the basics until the next month, is time to call your attorney. Once this happens, a cycle starts to happen, and it can be very hard to break it without influencing the balance of the credit card.
Many people believe that if they make the minimum payments with the credit card, then it’s not necessary to bring an attorney to the discussion. It actually is, since the majority of the payments that you make with that card cover the interest for that month. We advise you to see your attorney as soon as possible.
You swim in unsecured debt
Medical treatments are usually the ones we talk about when it comes to unsecured debt. Also, divorce, or business-related debt is subject to International Debt Collection. The reason is not that important, as it is the fact that you have a lot of unsecured debt and no money to pay it off. That’s when you know you need to talk to a lawyer. Chapter 7 can change your life in this situation.
Also, if you have lost your job, it means you have to deal with lower income – even if it’s for a short period of time, until you get a new job. You might have to get a credit card or a high-interest loan, thing that gets us to what we have discussed just above. If you’re using those to survive month to month, then you need to find a lawyer to help you.
Get money from your retirement
This is never a good idea. Don’t take money from there to pay the debt you have. You don’t really save much for retirement as it is, so it will only make things worse if you decide on this. Instead of taking all of the money – years of money – to repay your dischargeable debts, you’d better keep saving for retirement.
Repossession or foreclosure
In case you’re about to lose your house or your car to foreclosure or repossession, then you might want to call a bankruptcy attorney. After the bankruptcy petition is filed, then both the repossession and foreclosure should stop. This is known as “automatic stay” in bankruptcy.
A lawyer can save your house from this situation by making the most out of Chapter 13 – this one allows you to organize your debt and enter a payment agreement for about five years, a period of time in which creditors cannot repossess or foreclose.
You can keep your house if you catch up on mortgage payments. Under no circumstance should you wait for the last minute to talk to your lawyer.
The creditor harasses you
When creditors call you all day long, every day – because it happens a lot – and sending you threatening letters or keep harassing you about your debt, then it’s time to talk to a lawyer. If you file for bankruptcy, then you’ll stop these forms of harassments. It will stop all of the callers from calling you or sending scary letters.
If you’ve been sued, or you’re about to be sued, then you clearly need to talk to an attorney. After you don’t pay the money anymore, it’s just some time until the creditors sue you. And after you’ve been sued, the outcomes might be ugly, your bank account might be levied, or a lien might be placed on your home.
If you get a lawsuit, or a letter from the creditors telling you they’re going to file a lawsuit against you, then call your attorney as soon as possible.