It’s easy to fall into debt without realizing how bad your situation has become. While many people put off consulting a bankruptcy lawyer, it’s important to recognize that staying in debt can be even more damaging. If you‘re struggling to pay your bills and wondering if it’s time to consider bankruptcy, these guidelines can help you make a decision.

When Should You Consult a Bankruptcy Lawyer?

1. You’re Unable to Make Minimum Payments

In terms of paying your credit card debt, you should be able to make all of your required monthly payments on time. Even one late payment will adversely affect you. In addition to a late fee that may be applied to your next bill, your APR will likely rise, making it even harder for you to stay afloat.

2. You’re Unable to Pay Off Your Debt

When you go to a lender, they will look at your income versus debt ratio. This is simply a comparison of your income and the debt you must pay off each month. You should do the math yourself to determine how much money you can put toward paying off your debts. If your budget is as tight as you can make it and you still can’t come up with surplus cash to put toward your debts, talk to a bankruptcy lawyer.

3. You’re Diverting Money to Pay Your Minimum Payments 

If you’re considering getting another credit card, or withdrawing from your retirement account, just to pay off your debts, you’ll be better off talking to an attorney. Either option listed here will put you in an even worse financial situation, which is something you want to avoid. If borrowing from another source is your only method of paying your debts, you will be better off searching for debt relief alternatives. Look for options that will save you money and prevent you from making a deeper negative impact on your credit rating.

4. You Have More Than One Type of Debt

If you have personal loans, credit card debt, medical bills, or other types of debt, you likely have been struggling for too long. Having multiple types of debt often indicates that the individual has been borrowing as a means of paying off their pre-existing debts. This rarely works, particularly because the borrower ends up owing money to even more creditors, causing them to pay even higher rates of interest.

Padgett & Robertson, Attorneys at Law specializes in bankruptcy and other debt-relief options in Mobile, AL. If you are facing mounting debt and you don’t have a plan for paying it off, a bankruptcy lawyer from this firm will help. They have the expertise to answer any questions you may have about the process. To learn more about their bankruptcy services, visit their website. To discuss your situation with one of their attorneys, call (251) 342-0264.

No representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers.

We are a debt relief agency. We help people file for Bankruptcy relief under the Bankruptcy Code.