What happens when you file for bankruptcy? If you are one of the 80% of Americans who are in debt, you may have asked yourself this question once or twice.
If you are overwhelmed with debt, bankruptcy is an option you may want to take advantage of. While filing isn’t without consequences, it is a viable option for those who are drowning in debt and cannot see a way out.
However, before you start looking for a bankruptcy attorney near me it’s important to make sure bankruptcy is the best option for your situation. If you are thinking of filing but not sure it’s time, here are several signs it is.
Your Financial Situation Has Changed
One sign you need a bankruptcy attorney is if your financial situation changes. If you are behind on bills, suddenly out of work, are experiencing business failure, or something similar, consider filing. Major financial changes can take years to recover from and can leave you homeless if you don’t take action immediately.
You Don’t Qualify for Debt Management
A debt management plan helps people struggling with debt reduce interest rates and pay off debt faster. These plans are offered by nonprofit organizations and are only offered to those who are eligible. If you have been denied for a debt management plan, it’s time to find a bankruptcy attorney.
You Are Stuck in a Payday Advance Cycle
Payday loans are short-term advances on your paychecks. While they can be helpful in emergencies, using them every payday can get you stuck in a dangerous cycle. If you find yourself needing payday loans to survive, consider bankruptcy.
You Are Behind on Essential Bills
While skipping your credit card payment is bad for your credit score and worthiness, it shouldn’t leave you homeless or without power. If you find you are struggling financially and can’t pay essential bills like your mortgage, electricity, or water, it’s time to get help. These bills are essential and need to be paid to maintain a basic quality of life.
You Are Hiding From Debt Collectors
One sign you may need to file for bankruptcy is if you are hiding from debt collectors. If debt collectors are calling and your mailbox is full of collections notices, you are in real financial trouble. Your debt collectors are likely pursuing legal action, which will make filing for bankruptcy essential.
These Are the Signs You Need to Find a Bankruptcy Attorney Near Me
These are the signs it’s time to look for a bankruptcy attorney near me.
If your financial situation has changed drastically, you may need help. You should also consider bankruptcy if you don’t qualify for debt management, are stuck in a payday loan cycle, or are behind on essential bills. If you are hiding from debt collectors or are out of options, consider filing.
If you are in any of these financial situations, make sure to find an attorney as soon as possible.
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