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How Do You Know When You Should File Bankruptcy?

Many people will encounter debt at some point in their lives. In some cases, the debt can pile up quickly and snowball out of control, which can create a tremendous amount of pressure for the debtor. The result is looming debt, creditor harassment, and potential legal proceedings. To avoid the stress and anxiety mounting debt can cause, there is an option called bankruptcy. This legal term means that the debtor files a legal case, and depending on the outcome, the judge may rule in their favor, which allows them to take certain steps to eradicate or manage debt to get back on track and rebuild their financial standing and credit. Anyone who is in debt and seems to be getting deeper into the hole may want to consider bankruptcy and consult with a lawyer.


Deciding to Take Action

Although bankruptcy can be intimidating, it can also be an incredible resource for relief from mounting debt and harassment. People who have allowed debt to become overwhelming can quickly find themselves in a less than desirable situation that may be hard to get out of without professional assistance. That is where bankruptcy lawyers can be essential. Anyone considering the possibility of filing bankruptcy should consult with an experienced lawyer who specializes in this type of legal case and can help access the situation and make common-sense recommendations that allow for the best possible outcome for the client. Some things to take into consideration when considering bankruptcy would be the following.

  • Amount of debt to income ratio
  • The length of outstanding debts
  • Type of debts owed to creditors
  • Late fees and interest accrued
  • Imminent foreclosure or repossessions

When working with a lawyer, they will carefully consider all of these points of interest and more. They can help the client determine if bankruptcy is the right move and which type of bankruptcy to pursue. The two most common bankruptcy options for individuals are chapter 7 and chapter 13. When it comes to determining which type to choose, it can depend on your finances, ability to pay back past due debts, and more.

Working With a Bankruptcy Lawyer

Whenever individuals begin to consider filing for bankruptcy, they should immediately contact an attorney or law firm specializing in this type of case. When debts get too big, they can be the first line of defense to help regain control and take the appropriate action to cease collections, harassing phone calls, and letters to your home or office. It is the best solution for people who are out of options and need immediate relief.

However, something to consider is that certain steps must be taken to avoid having a case dismissed. There are many ways a mistake can be made, or paperwork may be filed or filled out incorrectly, which can be devastating to the person trying to get debt relief. Always work with an experienced, established bankruptcy lawyer or law firm with the knowledge and insight to help get the best possible outcome in a short time frame and properly submit and complete paperwork and meet critical deadlines.

Another point to keep in mind is honesty, which means you need to divulge all of your financial details without skipping anything. Be sure to completely submit all details and information to the lawyer or law firm to establish the need and best way to pursue a case if that is the best option. They will need to access the details you provide carefully to get a clear picture and submit information to the court, creditors, and other organizations. Have all of your documentation for finances and bank details, employment information, payment information, and personal details to help make the process smoother and work faster. The goal is to get a ruling in your favor as soon as possible, so action can be taken to stop collections, harassment, and penalties that add up quickly.

Don’t wait until a serious situation gets out of control or when you lose a home, vehicle, or have a wage garnishment. Get the help you need by contacting a reputable bankruptcy law firm or lawyer who can help you get a foothold to rebuild your financial status, pay off debts, and rebuild your credit. The process of bankruptcy may seem drastic or intimidating. Still, it is worth the outcome and can even help some individuals improve their credit standing to a better status than it was before debt began to pile up. If you are wondering if now is the time to begin looking for a bankruptcy lawyer, it is probably a good decision to consult with one right away to help prevent any further actions against you and help you avoid more penalties and fines that can make the hole deeper. Schedule a consultation to get a better picture and help determine the next step and breathe a sigh of relief.

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