Bankruptcy exists as a legal way to get relief from debt you can't repay. However, the process of filing for bankruptcy and going through the process can be tricky, so it is best to hire an attorney to guide you. A bankruptcy attorney not only handles the legal matters, he or she can also advise you on whether bankruptcy is right for your situation as well as when and how you should file. For example, here are some situations where you'll want professional help in deciding on filing for bankruptcy.
When Debt Is Caused By A Current Illness Or Injury
If you've been in the hospital and accumulated a mountain of medical bills you can't afford to pay, then bankruptcy seems like the best way out of your situation. However, if your medical needs are ongoing, you might be in a position where you'll accumulate more medical bills after you've filed for bankruptcy.
Then, you could be in a bad position since you won't be able to file for bankruptcy again for several years. Ideally, you want to file for bankruptcy once your financial emergency has passed so you don't accumulate more debt right after. Your attorney can advise you on the best way to proceed when medical issues are the reason behind your financial distress.
When Most Of Your Debt Is To The Government
While you can eliminate all kinds of debt in bankruptcy, you'll have a hard time getting out of paying taxes and student loans. If most of your debt is from back taxes and government loans, then your attorney may have to try a different approach to provide you with financial relief. Several factors come into play when you need help with debt to the government such as the amount you owe, the age of the debt, and your ability to pay. You may need a structured payment plan to repay the debt rather than eliminating it through bankruptcy. An attorney can help you make the best decision that keeps you out of trouble with the IRS.
When You Want To Hold Onto A House Or Other Valuables
You don't necessarily have to lose everything when you file for bankruptcy. Laws vary by state, so you want an attorney to explain what can be exempt from the process. However, you want to keep in mind, if you are allowed to keep your mortgage, car, or a credit card, you want to be in a position where you can afford the payments after bankruptcy or your life may be worse after you file if you can't keep up with your bills. Your attorney can help you decide if holding onto some of your debt is a good idea.
When you're behind on your credit card or car payments, your life can be miserable with creditors calling work and threats of lawsuits. Seeking advice and help from an attorney is often the best way to get relief when you don't have money to get caught up on your bills. No matter what caused your financial problems in the past, bankruptcy helps you get a fresh start on a better future.