5 Signs You Need a Bankruptcy Lawyer

Bankruptcy lawyers can help both debtors and creditors navigate the complicated process of bankruptcy and offer them some useful advice. Having an attorney on your side will reduce your uncertainty about how the process works and can make it less daunting. These professionals have the expertise you need to get back on track and deal with mounting debt.

When you are dealing with your own finances, it might be hard to tell if you need to seek a bankruptcy lawyer for advice. Signs to look for include not being able to keep up with bills, needing more money in the bank than you have, having past-due debts on your credit report, and not being able to get out of debt.

You have a judgment from your creditors that has not been paid off in time

A judgment is a court decision that one person owes another a certain amount of money. It is usually entered into your personal credit report to give you less chance at borrowing more money in the future. However, it is still possible to borrow after judgment, depending on the terms of the loan.

A bankruptcy lawyer can help you through the entire process of dealing with creditors, and can advise you know what your options are and how to proceed with a bankruptcy filing, which can stop further collection activity, eliminate debt, and give you a chance to start over financially.

You have more than one creditor disputing your debt

When you try to obtain a credit card or loan, a creditor requests your personal finance information from a credit-reporting agency (CRA). A CRA gathers information from creditors and provides useful information to creditors in order to verify identity.

Many consumers are unaware of this, but a consumer reporting agency (CRA) may dispute your credit report more than once. This can cause serious problems and complications when your score decreases drastically with each strike.

If more than one creditor contacts you, it could be because there are different versions of your account information with each creditor. This can happen if there was a mix up in sending or posting information when the accounts were sent to collections agencies or credit bureaus.

Why hire a bankruptcy lawyer

After a bankruptcy attorney gathers enough detailed information about your situation, he or she can inform you about the next legal steps for filing for bankruptcy. They can also answer any questions you may have about the type of bankruptcy that is right for you.

When choosing a bankruptcy lawyer, make sure to find one who is licensed, works on contingency, and is experienced in the field. Your bankruptcy lawyer will be able to advise you on how to properly fill out your paperwork, what to do if creditors start calling you before your case is discharged, and can even walk you through the court process.