Getting overcome by your debts can be one of the most stressful situations in a person's life. In most cases, by the time people/ companies realize they are too far in debt, it is usually too late for them to finance their debts with their incomes. In such a case, the best option is to file for bankruptcy to solve your financial problems.
Hiring a bankruptcy law attorney should be your first propriety when you realize you are way over your head in debt. Thus, here are some of the warning signs that let you know it's time to hire a bankruptcy law attorney.
Creditors Are Harassing You
When you default on several debt payments, creditors will automatically start harassing you. The harassment involves creditors calling you all the time and threatening you with legal action or worse if you don't pay your debts. The harassment can often lead to stress and other mental issues, especially if you can't find a quick solution for your financial troubles.
Thus, when creditors start harassing you, it is high time to seek the services of a bankruptcy law attorney. They will act as a middle man between you and the creditors harassing you. Thus, creditors will have to deal with your attorney instead of contacting you directly, which eliminates any chances of getting harassed further.
You Can't Decide Which Bankruptcy Chapter to File For
Filing for bankruptcy is governed by a set of laws known as the Bankruptcy Code. The bankruptcy code includes several chapters under which a company or individual can file for bankruptcy. If you can't figure out which type of bankruptcy you should file for, it is advisable to hire a bankruptcy law attorney to help you navigate the bankruptcy chapters.
A bankruptcy law attorney can help you file for Chapter 13 bankruptcy which allows you to pay off a percentage of your debt instead of filing for Chapter 7 bankruptcy which stipulates you liquidate your assets to cover your debts. Thus, a bankruptcy law attorney can help you retain your assets instead of selling them to pay off debts.
You're Facing Potential Repossession or Foreclosure
If you default on paying a considerable number of mortgage payments on your home, the bank will probably give you a notice that they intend to repossess or foreclose on your home. When this happens, it means there is a high likelihood that you might lose your house.
It is paramount you get in touch with a bankruptcy law attorney to help you file for bankruptcy in such a situation. They will help you file for bankruptcy under chapter 13 that could help you retain your house despite the bank's willingness to repossess or foreclose on the home.