As reported by the Federal Courts of the United States, the total bankruptcies across the United States were found to have grown by 14.2% in the year 2024 when compared to last year’s filings. The filings increased from 452,990 to 517,308. The figure is strikingly lower than that obtained from the bankruptcy cases registered pre-COVID-19.
If you start to feel the weight of debts on your shoulders and it appears impossible to keep up with the monthly payments, you might want to look up a bankruptcy attorney for help.
According to the Steele Law Firm, several people facing unmanageable debt spend too much time trying to work their way out of it or simply dodging the reality of the situation. By the time they consult a bankruptcy attorney, it’s often too late. One should consult a skilled lawyer to solve their debt problems.
Understanding the right time to ask for help is a great step toward redeeming your financial problems.
Let’s discuss the signs that indicate when you should take a case to a lawyer.
Signs You May Need a Bankruptcy Lawyer
Indications of serious financial problems could include numerous signs that tell you that it’s time to call for assistance from a bankruptcy lawyer. When you know your financial situation, then it should be easy to determine whether you are in need of assistance from a bankruptcy attorney.
If you’re struggling with debt and unsure how to pay, perhaps it’s best to seek help. Constant calls from creditors while you are barely making the required payments are an indication of a decreasing financial situation becoming harder to manage.
If you’re paying out of pocket for necessities like groceries or gasoline or if a major life event has occurred, such as a termination, a breakup, or some sort of medical emergency, get in touch with a lawyer right away. You should receive guidance through this hard time.
According to Anaheim bankruptcy lawyer Christopher P. Walker, P.C., it is critical to consult a qualified bankruptcy attorney who can advise you on your debt relief options before deciding what your next move will be.
Choosing to seek help from someone does not imply failure but rather an indication of strength as you try to re-establish your dignity and financial independence.
Understanding the Different Types of Bankruptcy
Understanding the types of bankruptcy is necessary since each serves a different purpose for a peculiar financial situation.
Chapter 7 is often considered the most common type of bankruptcy. This type quickly eliminates most unsecured debts.
If you were a businessman, you should declare for a Chapter 11 bankruptcy, as it permits a business that remains intact to have its debts restructured.
A person who has a regular income may use Chapter 13 to put forward a plan for repaying part or all of their debts over a period of three to five years.
Your ability to choose the specific form of bankruptcy that applies to your case, with all its advantages and disadvantages, would give you an empowering and comforting sense as you undergo the entire process.
The Benefits of Hiring a Bankruptcy Attorney
Hiring a bankruptcy attorney works toward relieving you of a lot of the stresses created by the complex bankruptcy process. They will walk you through each step in addressing your inquiries about options and rights.
With attorney representation, mistakes that risk compromising your fresh start can easily be avoided. These legal professionals are well-versed in some tragic mistakes debtors commonly make. The attorney knows how bankruptcy law works and will give you advice specific to your circumstances. You can benefit from their creditor negotiating experience, which will alleviate some pressure on you.
Having a bankruptcy attorney on your side means you have adequate legal support during this trying time. It is when you consult a bankruptcy attorney that you start to take back control of your finances.
What to Expect During the Consultation Process
Once you have settled on a bankruptcy attorney, you will want to know what to expect during a consultation. The first meeting is the time to be very honest about your finances. Tell the lawyer the full story about your debts, assets, and income. Your lawyer will be looking and listening carefully as you talk so he or she can ask questions that will serve to clarify your position.
You can express your worries without judgment in a friendly and supportive environment. Your lawyer will walk you through your options and explain the process of bankruptcy so that you have an idea of what to expect.
Your lawyer will talk about the fees and what has to be documented. This consultation will guide you in determining the best path for your financial future. If you have any concerns or questions, don’t hesitate to ask. Your attorney will do their best to help you overcome this difficult situation.
Steps to Take Before Filing for Bankruptcy
Strong pretrial steps can affect your bankruptcy filing.
You need to gather all the financial documents like income statements, debts, expenses, etc. Gathering these documents will help you better understand your situation. Then consider alternatives to bankruptcy that may be debt negotiation or credit counseling.
You can further consult your bankruptcy attorney to render you legal counsel about the specifics of your case and the steps involved. It is important to immediately stop using credit cards, as it will complicate your case.
Get ready for an emotional journey ahead. Friends or family members to support your cause will be a great help. Follow the legal advice given to you by your bankruptcy lawyer so that you can confidently achieve financial relief.