It is normal to feel overwhelmed with debt. Besides impacting your financial life, debt can cause mental health problems like anxiety and depression. There is no shame in filing for bankruptcy. This article offers insights into the benefits of hiring a bankruptcy lawyer.
When Do You Need a Bankruptcy Lawyer?
Bankruptcy is a legal process that protects you from creditors and relieves debt obligations. Essentially, financial distress is a gradual process. Thus, failure to address these issues will leave you with no option but to declare bankruptcy.
The following are signs that you may need a bankruptcy lawyer:
- You had a significant financial setback due to job loss, medical bills, or divorce
- You have to use credit cards to pay daily expenses
- You end up paying overdraft and late fees regularly
- Collection agencies are pursuing you persistently
- Creditors have sued you or threatened to sue you over debts
- You cannot qualify for debt relief programs
Why Do You Need a Bankruptcy Lawyer?
The primary benefit of engaging a bankruptcy lawyer is that they provide the necessary expertise to navigate bankruptcy processes. Typically, filing for bankruptcy is a legal process that requires an understanding of the law. When you retain the services of a bankruptcy lawyer, you can leverage their knowledge and experience in similar cases. Notably, the lawyer starts by evaluating your options to see if filing for bankruptcy is the best alternative. Then, the attorney uses their expertise to prepare for the application and represent you in court. Consequently, this will help you avoid making costly mistakes that would lead to further financial loss. Moreover, the attorney will help you eliminate all eligible debts to discharge you from your obligations.
Managing the Paperwork
The bankruptcy process involves filing a large amount of paperwork. In addition to the bankruptcy application forms, one has to provide documentation to support the claim. Typically, it is possible to fill the forms incorrectly, which can complicate the process. Thus, the bankruptcy lawyer ensures you fill the applications correctly and factually. Also, the attorney understands the necessary support documents required to prove your financial situation. Such documents include disclosures, financial statements, and asset valuations. The lawyer will help you gather and present these documents to strengthen your application. In addition, the bankruptcy lawyer enables you to save time researching, reviewing, and presenting bankruptcy information.
Handle Creditors and Collection Agencies
Harassment by creditors and collection agencies is a prevalent practice. Typically, the harassment includes constant phone calls, threats, and visits to your premises. Such an experience can be stigmatizing and embarrassing. Fortunately, you can protect yourself from such harassment by engaging a bankruptcy lawyer. Essentially, the creditors and collection agencies will have to communicate with you through your lawyer. More so, if the bankruptcy goes through, you will have an automatic stay protecting you from future harassment.
Do not let the debt cycle and bankruptcy application process stress you. Talk to a bankruptcy lawyer, and leave the process to a professional who can guide and update you every step of the process.