Filing for bankruptcy sounds pretty ominous. And, you can’t help worrying about your future financial standing. After all, the news is full of sordid tales of business giants going bankrupt, with details of lay-offs, enormous debts, and assets sold off. They do tend to paint a very frightful picture when it comes to filing for chapter 7.
But, when can you be sure that you are heading in the direction of a bankruptcy? Don’t stress, as the signs are fairly obvious, and if you don’t know where you stand, we’ll help you figure it out and provide helpful solutions to work your way out of the messy money matters.
Just answer a few of these questions to understand if you are lurking in murky waters of financial insolvency.
- Do you pay for your necessity through your credit card?
- Are all your debt collectors calling you regularly?
- Are you missing out on your credit card payments?
- Is your FICO score falling fast lately?
- Are you unsure of how much debt you owe?
- Does dealing with your finances make you feel frightened?
If you’ve answered yes to two or more of these questions, then you know that your finances need reevaluation.
Filing for Chapter 7, also known as “straight bankruptcy,” is standard for individuals who find that they owe more than they can pay. An extensive medical bill, loss of employment, marital problems, or overextended credit are some of the causes of liquidation.
So, Chapter 7 allows you to use your assets, fixed or otherwise, to pay off the outstanding debts. On the other hand, you can even file for Chapter 13, where you get three years to pay off your debts.
However, sticking your head into the ground like an ostrich is never viable for the future. When it comes to financial problems, it’s smarter to grab the bull by its horns and face the situation head-on. And, if you think that you’re not one to deal with a bull at any point in time, then you can get help.
The best way to deal with such a scenario is to hire a bankruptcy lawyer, someone who is apt to deal with money matters, credit card companies, and knows of all the laws that you can make use of to get you out of the sticky situation. And, if you’re afraid that filing for bankruptcy is going to be the end of your world, then you couldn’t be more wrong.
There are laws in place that protect credit card companies. But, many laws protect the rights of individuals, so filing for Chapter 7 or 13 may just mean a fresh start for you.
However, there are certain aspects that you need to consider before you hire a bankruptcy lawyer. Read on to find out what these considerations are.
Things To Look For When Choosing The Right Lawyer
The lawyer who helped you settle your claims for an accident isn’t the right guy to help you out during a divorce. So, you have to remember that lawyers specialize in particular fields. And, you have to understand what your needs are and the circumstances at hand before you pick out a professional to assist you with your case legally.
You have to realize that fresh law graduates work with experienced lawyers to handle cases. But, the more experience you gain, the more you can value a case for settlement, negotiate with seasoned lawyers or insurance adjuster, pick a sympathetic jury, or even make a compelling argument in your favor.
So, you must keep in mind that if you have a simple case, then you can go to a competent lawyer. But, if you have a tricky one, then you want to be with someone who has more experience in the field.
Small community lawyers tend to deal with multiple cases ranging from estate handling to drafting contracts. General practice lawyers, however, do not have the expertise to handle bankruptcy cases, this is where bankruptcy lawyers are useful..
Hence, it’s a good idea to hire someone who has professional membership in organizations that are devoted to specific fields. Thus, they can attend seminars and make professional contacts that enhance their ability to perform to the best of their abilities. You learn better client care, the work ethics related to the field, and master to be more empathetic towards your clients.
Lawyers do develop a reputation for their skillfulness over a period of time. And, once you hire once as the leader of the field, you know that you’ll get the best representation possible. In terms of bankruptcy cases, a good lawyer can help you save some of your more personal assets, get you a prolonged probation period to pay off the debt, and even get reduced interest rates.
There are lawyers out there who see their occupation as just a job. They overlook that the fact that the verdict their clients get will affect the lives of the clients. However, many do care for the well-being of their clients. This is the kind of bankruptcy lawyer you want.
One who has exceptional communication skills, listening skills, leadership qualities, patience, and empathy is someone who may be hard to find. But, if you use referrals from friends and family, you’ll probably end up locating someone who fits the bill.
Meet With A Few
Even, if you’ve done your research right, don’t just sign someone up out of the blue. Shortlist a few that you’d like to meet in person. You see, someone who may sound understanding and encouraging on the phone may appear to be cold and withdrawn in person.
Thus, take the time out to meet up with all the lawyers you’ve shortlisted and see who put you at ease. Also, it’s sensible to go with someone who can be easily reached when you need to discuss urgent and vital issues.
The best place to start if you feel that you are facing harsh financial problems is to calm yourself. The next thing to do is to get in touch with friends or family members who have encountered similar scenarios.
Also, it pays off to do some search on the net, as many law firms now provide customer reviews where you can get a good idea about the kind of lawyers you’ll be in touch with. And, we’re hoping that the article has given some useful tips too to further you in your endeavor.