Finance

5 Signs It Is Time to Consult an Attorney About Debt Relief

Anyone can find themselves in a situation where they are facing financial challenges. Circumstances may change unexpectedly and alter anyone’s situation, often very quickly. Some people are able to find solutions and get control of debt, but not everyone has the needed resources.

In these cases, Bankruptcy can help relieve stress and give debtors a fresh start. Attorneys who have experience dealing with financial issues generally provide free consultations and help clients make the best choice for their situation. There can be many reasons to file for debt relief, and attorneys frequently recommend it in the following five circumstances:

  • Debtors Always Pay Bills Late

At some point, nearly everyone will pay a bill late, which is no big deal. But anyone who is constantly “moving money around” by paying some things late to pay other things on time might want to consider debt relief. Late payments can result in fees that increase debt.

  • Assets and Income Do Not Cover Debt

When a person’s total assets and income don’t come close to covering their debt, they need help. In these cases, individuals usually don’t have the resources to get a handle on their debt within a reasonable timeframe, if at all. That puts them in a non-stop debt spiral that leaves them living paycheck to paycheck for years and still going without.

  • There Are Multiple Kinds of Debt

Those dealing with a single type of debt, such as credit cards or medical bills, can often find a way to pay down their balances. However, juggling many types of bills can be confusing and make it difficult to see progress. An attorney can explain a debt relief plan that provides freedom from this kind of debt and gives clients a new beginning.

  • Debtors Cannot Make Minimum Payments

Debtors can sometimes regroup financially by paying some payments late for a while and then getting back on track. These temporary setbacks may not be ideal, but there can be light at the end of the tunnel. However, when debtors cannot make minimum payments on any bills, they are digging themselves into a financial hole that is nearly impossible to climb out of without help.

When income is not sufficient to keep up with monthly payments, it is time to re-evaluate finances. An attorney specializing in financial relief can assess each client’s situation and provide solutions that give them a chance for a brighter future.

  • Income Will Not Increase Any Time Soon

In an ideal situation, employees can look forward to ever-increasing income throughout their working life. Higher wages allow them to pay down debt and meet their goals. Today, many workers earn the same income for years, with only small increases, so their financial situation shows little improvement as time goes by. In these cases, attorneys can often suggest options that provide financial relief.

While most people plan to work and get ahead throughout their lives, sometimes circumstances alter financial situations. In these cases, attorneys recommend debt relief options that provide debtors with a fresh start in life. This may be the choice for those whose income cannot cover debts, and there is little chance of an increase. Debt relief may also be the best option for those who continually make late payments, cannot meet minimum payments, or have several types of debt.