When life takes on a drastic turn and your financial status is slowly spiraling down, you might want to consider filing bankruptcy. Today, financial problems can be exceedingly stressful and can, later on, affect both physical and mental health.
Often, deciding to dissolve your debt might be the right move to make to put an end to your financial woes. If you’re uncertain if you need to file for bankruptcy, consider contacting a bankruptcy lawyer soon.
Although filing for bankruptcy won’t solve all your problems, it can provide you with a second chance to put your life back in order. If you want the proper assistance once you file for bankruptcy, checking out reliable professionals in the industry such as Steele Law Firm and others would be a good starting point.
If you’re still having doubts about filing for bankruptcy, here are several signs you need to consult a bankruptcy lawyer.
- Skipping On Your Bills
Once you find yourself skipping on your bills to pay another one, your finances might be in danger. If you allow this habit to continue, it’ll only worsen because you’re missing out on the essential bills.
In the worst-case scenario, you might skip on your utility bills such as electricity and water, which can negatively affect your quality of life. If you don’t want to worsen your current situation, you need to consult a bankruptcy lawyer to help you move through this ordeal.
- High Credit Card Balance
Today, a credit card is a convenient tool to purchase goods and services, but you need to use it wisely. Once your credit card balance is too high and you no longer have the funds to pay it off, you need to call a bankruptcy lawyer to determine options to remedy your credit card debt.
Many assume that they can purchase anything if they can manage to pay off the installments on their credit cards. If you have the same mindset, you’re making a mistake.
- Unsecured Debt
If you’re facing unsecured debt, it can be a challenging issue to deal with. When you have unsecured debt, it might be due to divorce, medical emergencies, and other large-scale events.
In such scenarios, the best move to consider is filing for a Chapter 7 bankruptcy to lessen the burden and allow you to fix the problem. Chapter 7 bankruptcy is a type of bankruptcy that can clear various kinds of unsecured debts. It’s also called a straight or liquidation bankruptcy.
If you’re late in paying your bills and lack the means to pay monthly payments and living expenses, filing for Chapter 7 bankruptcy is usually the last resort to reset your finances.
Many believe that the job they hold can help them deal with any amount of debt. Sadly, once you lose your job, unsecured debt brings about a negative element in your life since you can’t cope up with the payments anymore.
- Facing A Lawsuit
When you’re having a hard time juggling your credit and debt and eventually missing out on them, the creditors have the right to sue you at some point. Generally, it’s one of the obvious signs you need to file for bankruptcy.
The situation is likely to occur if you’re managing a business. In most instances, the debt can be huge, and your business could no longer cope with the large amount. The debt can strain your finances since repaying might force you to sell your assets. One of the ways to get out of this situation is to declare bankruptcy with a lawyer’s help.
- Consuming Your Savings And Retirement
At first, working out your debt might seem an easy task if you’re using your savings or retirement funds. Sadly, you’ll be facing a problem once you completely deplete your savings and retirement funds which is a clear sign of a financial crisis.
If you’re not able to invest in your savings or retirement account since you still have a debt to deal with, it can mean an unfavorable financial future.
In such cases, filing for Chapter 7 bankruptcy is the best move you’ll make in which most of your unsecured debt will be frozen, giving you the chance to start saving money again.
- Stress Due To Debt
Almost every person facing debt will share that it can be a stressful ordeal, especially its psychological effect on the mind. Several psychological factors will eventually manifest into physical ailments if stress lingers for a long time.
If you find yourself trapped in a constant cycle of debt, it can be a severe health concern, especially if it’ll take some time to deal with it. If you’re in a stressful ordeal, it’s best to consult a bankruptcy lawyer to assist in minimizing any stress you’re experiencing.
Final Thoughts
Not everyone favors bankruptcy, but it’s a necessary move to make if you want to put your financial life in order without the constant pressure of debt. Many tend to overlook the need to file for bankruptcy when facing financial distress, but it’s crucial to consider it as an option.
