When you hear the word bankruptcy, what do you think of? You probably think of several negative images and it can make just the word that more terrifying. Because of this, consumers tend to forget the real purpose behind filing. Bankruptcy provides protection from creditors and it offers relief from some — or maybe even all — of your debt obligations.
While it still may seem like a very daunting and overwhelming task, it is possible. With the help of a qualified attorney, they can help you get back on your feet. It is their job to help protect the assets that mean the most to you while providing you with options on how to relieve your debt. Here are some signs you need a bankruptcy attorney, courtesy of our friends at the Law Offices of Neil Crane.
Signs That You Need to File For Bankruptcy
Financial distress rarely happens overnight or unexpectedly. Typically, it is a gradual process, with several warnings going up that things are quickly deteriorating. If you ignore these warnings, your finances can easily go up in smoke and by then it is too late to do anything else but declare bankruptcy.
Here are some of the obvious signs that bankruptcy might be in your future:
- You are only making the minimum monthly payments on your overdue bills
- Your credit cards are maxed out and your debt is growing instead of shrinking each month
- You are having to use credit cards to pay for everyday expenses like groceries, rent, or utilities
- You are paying overdraft fees each month
- Collection agencies are calling your house every day and are unrelenting
- Creditors are suing you or are threatening to sue you over your unpaid debts
- You don’t qualify for debt relief programs like debt management or debt consolidation loans
- A job loss, divorce, or medical setback turns your finances upside down
Bankruptcy is not usually the first option for debt resolution, but it can be a good solution for many people. There are some downsides, but in the end, they often are outdone by the beneficial side effects that happen. It is true that bankruptcy will damage your credit and it will stay on your credit report anywhere from 7 to 10 years. It can be an obstacle towards getting security clearances as well.
Despite the negative side effects, it is a viable option for many people who can’t resolve the problem in less than five years. It can easily help people get back on their feet and oftentimes your credit report can easily recover in 2 to 5 years.
If your financial status has soured and you want protection from creditors and relief from the obligations, then a bankruptcy attorney is there to help you get back on your feet and get the relief you rightly deserve so contact one today.