In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor. Some have experienced serious problems, such as loss of a spouse, illness, or unemployment, that hinder them from getting a job or having enough money to provide for themselves. As a result, they fail to pay living expenses and rack up debts.
If you’re dealing with a financial crisis, you can seek help from a bankruptcy lawyer. A bankruptcy lawyer will not only offer legal advice, but they will also assist you with paperwork. They evaluate your situation and develop an understanding of your debts and assets, so they will provide you with the best plan for Florida bankruptcy.
Plus, they’re excellent negotiators. They have the expertise to negotiate favourable deals on mortgages, car loans, credit cards, or other debts. They will aid you in exploring your options and negotiating a payment plan with creditors.
Moreover, they help you file for debt relief under the Bankruptcy Code. They offer you support in filing for a Chapter 7 or Chapter 13 bankruptcy case if you have a debt you can’t afford to pay.
Hiring a lawyer is crucial, as failure to pay your debt multiple times can lead to legal action and a court judgment if you haven’t gone through the court process or provided any proof of financial hardship or payment arrangement. As a consequence of your inaction, a creditor or lender can take part of your salary every payday until the debt is paid, based on the Florida wage garnishment laws.
Read on to learn more about the signs you’ll need to enlist the services of a lawyer.
1. You Use Your Credit Card To Pay Other Credit Card Debt
Sometimes, it’s fine to use your debt to pay another debt. For instance, you might obtain a balance transfer on a credit card for zero percent interest. You can then move that high-interest debt to that credit card and save a considerable amount of money in interest while paying one of your debts in full at the same time. However, some cases prove there’s a financial issue concerning the action of paying off credit cards with another credit card or debt.
If you’re using balance transfers to have more money to spend, it may be high time to consult a bankruptcy lawyer since you’re already spending beyond your means. This then becomes a vicious circle. You’ll obtain one debt to spend on another but will end up with having a new debt that has to be paid. You’re most likely to have a hard time repaying the debt because you won’t be able to pay off the original debt. In this kind of situation, a lawyer might advise you to file for bankruptcy in Florida.
2. You Have A High Credit Balance
Another noticeable sign you need to be aware of is having a high credit balance. It’s usual for others to rush on to get the credit cards with the highest purchasing balance, but they fail to realise that they’re actually dismissing their financial capacity.
Some believe they can purchase anything if they have the chance to afford instalments. However, this isn’t always the case. If you use your credit card with a significantly high balance for a while and think you’ll never have the chance to repay it under normal conditions, this can result in a low credit score. Hence, you should avoid further issues by consulting a lawyer to arrange things properly.
3. You Miss Your Mortgage Payments
If you’re dealing with increasing costs for bills and rising debt, you’ll have a hard time paying your mortgage. When you have missed mortgage payments, the bank will begin a foreclosure.
Furthermore, if you own the property but have a significant amount of debt with the bank, your home could become a tool for collateral damages. The bank can take away your home to make up for the debt that you’ve failed to pay.
If you’ve been reminded of your loan through phone calls or letters from the bank, you’ll need to consult a bankruptcy lawyer. Your bankruptcy lawyer can form a plan to keep your property and pay the bank through another alternative. They might also guide you through filing for Florida bankruptcy. In addition, they can work with you to figure out a way to lower your bills.
Dealing with a financial crisis is difficult and stressful. It might make you feel hopeless and helpless. But you can turn to a bankruptcy lawyer who will lead the way, find effective solutions, and ensure that you file for Florida bankruptcy correctly. So, if you notice any of these signs, you should consult a bankruptcy lawyer as soon as possible. With their assistance, you’ll be able to live a life of financial freedom.