Is It Time To Declare Bankruptcy, And How Can A Legal Advisor Help You? Find Out

Posted on: 19 October 2022

Some people consider bankruptcy a last option, which is why they struggle with burdensome financial situations, hoping for improvement. Unfortunately, they may continue accruing more debt, and interest will usually accumulate. This puts them at a higher risk of losing their assets to their creditors. For this reason, you should not wait until your financial situation has deteriorated for you to take action. Instead, consider declaring bankruptcy if you notice the indicators discussed below.

Indications That You Need to Contemplate Declaring Bankruptcy 

The first indication that you need to consult a bankruptcy attorney is that you're borrowing to make debt payments. While this might be your go-to option to get rid of aggressive creditors, it might get you into more financial problems. You may also consider filing for bankruptcy if you can't afford to make the minimum payments on your debts. This failure to make minimum payments can make penalty fees and interests continue piling. This can increase your debts significantly, making it more challenging to pay them back.

You might also consider declaring bankruptcy if your financial circumstances threaten your employment. This may be the case if creditors contact your employer to garnish wages for a judgment. Such actions can upset your employer, compromise their opinion of you, and they might decide to terminate your contract. Therefore, you may want to act fast before you risk losing your job because of your debts. In these situations, filing for bankruptcy might be the only way to prevent your creditors from taking legal action against you. However, it is important to note that filing for bankruptcy can be complex. Accordingly, you may want to work with bankruptcy services providers to avoid hitches that may make you fail to qualify for bankruptcy.

Importance of Working With a Legal Advisor

Your legal practitioner's objective will be to examine your situation and confirm that filing for bankruptcy is a good solution. They will then determine the most suitable bankruptcy option for your situation. Next, your legal advisor will file a case in court and notify creditors of your intention to declare bankruptcy. This will halt all collection efforts until the completion of the bankruptcy process or until creditors get a court order allowing them to continue with the debt collection plan.

If your financial situation is worsening by the day, don't wait until the situation becomes unmanageable. Instead, contact a bankruptcy law service. They can help resolve your issue and get you back on your feet financially.