Filing for bankruptcy can be an empowering step that helps you reclaim your solvency and start on the path toward a stronger financial future. The subject of bankruptcy, however, is one still shrouded in misconceptions, and many people don't realize the extent of the relief bankruptcy provides.

Here are three situations that can be helped by filing for bankruptcy and the services of a bankruptcy lawyer:

1. You Cannot Realistically Repay Your Debt

If the amount of money you owe far exceeds your ability to repay it, bankruptcy may be the best option for you. Weigh your monthly income against your monthly debt obligations; if you have to pick and choose what bills you're going to pay that month, your income is probably not sufficient to repay your balances in full. This would be an ideal time to contact a bankruptcy lawyer and start exploring your options.

2. You Make Only Minimum Payments

Credit card companies give the illusion of helping you out by suggesting a minimum monthly payment. But this will rarely make a dent in your actual debt; it often just goes toward interest rates or finance charges. If you're able to make only minimum payments, filing for bankruptcy could be the best next step for you.

3. You're Facing Foreclosure

No one wants to lose their home, and those considering filing for bankruptcy often fear that foreclosure is inevitable once they file. However, this is not true. A temporary stay is issued on all foreclosure action once you file for bankruptcy. If you file for Chapter 7 bankruptcy, which eliminates many types of unsecured debt, you have a window of time to come up with some solutions with your bankruptcy lawyer. If you file for Chapter 13 bankruptcy, which restructures your debt into lower monthly payments, you may be able to hang onto your home so long as you can repay what you owe while keeping up with current mortgage obligations.

The bankruptcy lawyers at Pray Law Firm PA serve clients throughout the North Little Rock, AR, area; they also offer representation in family law and personal injury matters. Call (501) 771-7733 or connect with them on Facebook or Google+ to schedule a consultation. Find out if bankruptcy is the right choice for you, and trust your case to professionals.