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You Have Overwhelming Debt

Credit Card Debt

One common reason to seek bankruptcy representation is that your credit card debt is out of your control. If you can no longer afford the minimum payments on your credit cards, any missed payments are going to cause your balance to grow higher over time. It doesn't take long for your credit card debt to get so big that you cannot handle it at all.It is important to talk to a bankruptcy lawyer as soon as possible when you realize you are not going to be able to pay your debt. This will put the solution in motion before the problem gets even worse.

Medical Debt

Medical debt is another kind of debt that can easily sneak up on you and cause you to need to file a bankruptcy claim. If you were in an accident, needed surgery, or had a serious illness, the costs of hospitalization and treatment add up very quickly. This is even true if you have health insurance. This debt can keep growing larger because treatment for any serious medical concern can easily last for months or years.When you call an attorney to help you with a bankruptcy claim, you will find out how to take care of medical debt that is causing you financial hardship.

Personal Loans

A personal loan is an unsecured loan that accrues interest over time. When you took out your personal loan, you may have been in the right financial situation to handle the payments. If you had a significant change in your life such as divorce or a medical emergency, you may not be able to make those payments anymore.Filling for bankruptcy can help you take control of this debt. Your attorney will explain how and will discuss the best strategy for your situation.

Student Loans

If paying back your student loan debt is causing you financial hardship, talking to a bankruptcy attorney can help. Student loan debt is treated differently in bankruptcy court than other types of debt, but it is possible to get student loan debt discharged through the bankruptcy process, especially if making the payments is causing you to be unable to pay your regular bills.A bankruptcy lawyer will talk to you about your specific situation and let you know what would happen to your student loan debt if you filed for bankruptcy.

Collections Representatives Are Contacting You

Phone Calls

If you owe money on credit cards or to any company, the account will usually be sold to a collections agency after it has gone unpaid for several months. Once the collection agency is in charge of the money, its representatives will begin calling you on any phone number they can find associated with your account. This can be an embarrassing and annoying situation.As soon as you start the process of filing for bankruptcy, collectors can no longer legally call you. Your attorney can handle any collectors who break this rule.

Collections by Mail

Having your mailbox filled with notices and threats from collectors is a stressful situation. The sooner you contact a bankruptcy lawyer, the sooner this mail will stop, You will be able to go to your mailbox again without dreading what you will find inside.

You Are Behind on Your Mortgage 

Fees and Penalties

An emergency situation like the loss of a job may have prevented you from making your mortgage payment on time. If you have missed a few parents, you may still owe that money along with fees and penalties that add to the total due. Even if your situation has changed and you've recovered your regular income, you still may not be able to pay the large amount you owe to your mortgage finance.Bankruptcy will allow you to get control of your mortgage payments. Talking to an attorney is the first step.

Foreclosure

If you are in danger of losing your home, you should speak to a bankruptcy lawyer as soon as possible before the foreclosure process begins. Filing for bankruptcy offers ways of allowing you to keep your home, but you have to speak to a lawyer and get the process started right away.

You Need Information From a Bankruptcy Attorney

Does Debt Disappear?

Bankruptcy law is not easy to understand, and you may be confused about how it works. Various kinds of debt are treated differently in bankruptcy court. Some types of debt can be discharged completely while other types may be put on a payment plan. Your attorney will be able to speak specifically to your debt and help you understand the most beneficial course of action.Bankruptcy is complicated and not something you will want to tackle on your own. By talking to an experienced bankruptcy lawyer, you are setting yourself up for the best chance of success.

Types of Bankruptcy

When you come in to talk to us about your bankruptcy claim, we will explain the types of bankruptcy available to you and what they mean. Personal bankruptcy is filed through either a chapter 7 or chapter 13 bankruptcy. You will choose which one to pursue based on the type of debt you owe and whether you have assets that you want to keep.A chapter 7 bankruptcy is a liquidation of most or all of your assets, using the money to pay your debtors. A chapter 13 bankruptcy is more of a reorganization of your debt where you are helped with a payment plan to pay back the money you owe. Both types have advantaged and disadvantages. Your attorney will advise you on which is the right choice for you.

Do You Qualify?

Not everyone qualifies to file for bankruptcy, especially for a chapter 7 bankruptcy claim. To determine your eligibility, the court will look at a number of factors like your household income and the number of people you support. The court will also need to know about your total expenses and your disposable income. Information like how long you have been in debt and how you got into debt also play a role.The best way to understand whether you qualify to file for bankruptcy and which types are available to you is to talk with a lawyer who understands bankruptcy law.If you need help understanding bankruptcy and getting out of overwhelming debt, we can help you discover whether filing for bankruptcy is the right decision. Call us as soon as possible at Stockton and Stern LLC for a consultation. We will discuss your situation and give you the information you need to make a smart decision. If you have to file for bankruptcy, you want an experienced bankruptcy attorney on your side. We will be on your team and will help you through this process to make a new start.