Key Signs You Need Legal Help
Filing for bankruptcy is a significant decision that can help individuals and businesses regain control of their financial future. However, navigating the bankruptcy process can be overwhelming, especially without legal guidance. Hiring a bankruptcy attorney ensures that you make informed decisions, protect your assets, and avoid costly mistakes. In this blog, we’ll explore the key signs that indicate when it’s time to seek the help of a bankruptcy attorney.
1. You’re Facing Mounting Debt You Can’t Repay
If you’re overwhelmed by debt and unable to make minimum payments on credit cards, medical bills, or personal loans, bankruptcy might be an option. A bankruptcy attorney can:
- Assess your financial situation.
- Help you determine if bankruptcy is the right solution.
- Identify whether Chapter 7, Chapter 11, or Chapter 13 bankruptcy is best for you.
2. You’re at Risk of Losing Assets
One of the biggest concerns when filing for bankruptcy is protecting your assets, such as your home, car, or retirement savings. An attorney can help:
- Identify exemptions under bankruptcy law to safeguard essential assets.
- Prevent repossession or foreclosure by filing for bankruptcy strategically.
For example, filing for Chapter 13 bankruptcy may allow you to keep your home while restructuring your debt.
3. You’re Facing Legal Actions from Creditors
If creditors are threatening lawsuits, wage garnishments, or bank account levies, an attorney can intervene. Filing for bankruptcy initiates an automatic stay, which halts all collection efforts, including:
- Lawsuits.
- Harassing phone calls.
- Foreclosure proceedings.
An experienced attorney will ensure the automatic stay is enforced and protect you from aggressive creditors.
4. You’re Unsure Which Type of Bankruptcy to File
Understanding the differences between Chapter 7 and Chapter 13 bankruptcy is crucial. A bankruptcy attorney will evaluate your financial circumstances to determine the most suitable option:
- Chapter 7: Liquidates non-exempt assets to discharge unsecured debts.
- Chapter 13: Allows you to reorganize debts and create a repayment plan over three to five years.
Making the wrong choice can result in losing assets or failing to resolve your debt effectively.
5. You’re Overwhelmed by the Paperwork and Legal Requirements
The bankruptcy process involves extensive paperwork, including:
- Filing petitions.
- Listing assets, liabilities, and income.
- Attending creditor meetings.
Mistakes in these documents can lead to delays or even case dismissal. A bankruptcy attorney ensures your paperwork is accurate and complies with court requirements, streamlining the process.
6. You Want to Avoid Common Bankruptcy Mistakes
Filing for bankruptcy without an attorney increases the risk of errors, such as:
- Omitting assets or debts on your filing.
- Failing to attend required meetings.
- Choosing the wrong bankruptcy chapter.
An attorney helps you avoid these pitfalls, ensuring a smoother process and better outcome.
7. You’re Concerned About Long-Term Financial Impact
Filing for bankruptcy impacts your credit score and financial opportunities, but an attorney can help you plan for the future. They offer advice on rebuilding credit, managing finances, and avoiding similar financial challenges.
8. You’re a Business Owner Facing Insolvency
For businesses, bankruptcy can be even more complex. Whether you’re considering restructuring debt through Chapter 11 or winding down operations, a bankruptcy attorney is essential to:
- Protect business assets.
- Address creditor claims.
- Navigate employment or lease agreements.
Hiring a bankruptcy attorney is a crucial step when facing overwhelming financial challenges. They provide the legal knowledge, experience, and strategic guidance needed to simplify the process, protect your assets, and set you on a path toward financial recovery.
How Mike Christensen Can Help
If you’re facing financial challenges or looking to protect your assets and secure your family’s future, Mike Christensen Law offers expert guidance in both bankruptcy and estate law in Columbus, OH. With years of experience, our team is here to help with bankruptcy filings, wills, trusts, probate, and more. Call today for a free consultation—Michael Christensen is here to help you secure peace of mind for you and your loved ones.
