Most Americans who struggle with their debt wait for too long before they speak to a bankruptcy attorney. Unfortunately, this leads them to make ill-advised financial decisions, and most of the time, these decisions put them into more debt. While there isn't an overarching issue that may point out that you need to file for bankruptcy, consider talking to a bankruptcy attorney if you note the following signs.
1. You have a lot of credit card debt, and you're using other credit cards to pay off this debt
Sometimes you can pay off a debt with another debt as long as you can pay off the balance in a few months. However, when you find yourself using your credit card to survive until the next month, it means that you're living beyond your means. This can quickly become a vicious cycle, and you will always have debt to pay off. Furthermore, if you were unable to pay off the initial debt, you will most likely not be able to pay off the new debt. To end this cycle, you should talk to a bankruptcy lawyer to help you file for bankruptcy.
2. Your creditors have started proceedings to garnish your wages
If your creditors are suing you or you suspect that they will sue you soon because of missed payments, you should get in touch with a bankruptcy lawyer. When your creditors bring a lawsuit against you, your creditors could garnish your wages or put liens on your property.
If you have been summoned because of missed payments, ensure that you talk to a bankruptcy attorney. While it's crucial to have an attorney before filing for bankruptcy, it's imperative if you want to stop wage garnishment.
3. Your creditors want to foreclose on your home
Filing for bankruptcy won't help to discharge your home loan. However, when you file for a Chapter 13 bankruptcy, you will be given some time to repay the missed monthly payments. This type of bankruptcy restructures your debt into a repayment plan. Typically, you will be given three to five years to repay your debts. This is more than enough time to repay and also protect yourself from foreclosure. Therefore, if your creditors have started proceedings to foreclose your home, now is the best time to talk to a bankruptcy lawyer.
4. Your creditors are harassing you
If your creditors have started calling you every day and sending threatening letters about your debt, it's vital that you speak to an experienced bankruptcy attorney to file for bankruptcy. When you file for bankruptcy, all these forms of harassment will stop.
If you're overwhelmed with debt, you're struggling to make your monthly payments, and you've tried all other options, then now is the right time to consult a bankruptcy attorney.