Bankruptcy, a legal process that acknowledges an individual’s inability to meet their debts, can provide a fresh start by relieving them of most financial obligations. Two bankruptcy types exist: voluntary bankruptcy (debtors petition) and creditors petition, where an owed party initiates bankruptcy proceedings through the court. However, before embarking on bankruptcy proceedings, several important considerations should be taken into account:
- Seek Expert Counsel
- Familiarize Yourself with the Process
- Assess Your Alternatives
Signs That Bankruptcy Might Be a Viable Option
In the face of overwhelming debt and uncertainty about potential remedies, bankruptcy might emerge as a viable solution. Prior to commencing bankruptcy procedures, the Lawyer Referral Service of Central Texas (LRS) recommends engaging a bankruptcy attorney in the Austin area to gain comprehensive insight and guidance. While contemplating bankruptcy can be daunting, it’s crucial to acknowledge its potential to alleviate financial burdens. Often, bankruptcy presents the most effective means of overcoming complex financial challenges.
Here are additional indications that bankruptcy might be worth considering:
Relying on Credit Cards for Basic Necessities
If the use of credit cards becomes necessary for essential expenditures like groceries, gas, or clothing, replacing your usual debit card, it’s likely indicative of a financial crisis. This situation should prompt you to seek the counsel of an Austin, Texas attorney, who can assess your circumstances and help you determine if bankruptcy is a suitable course of action.
Facing a court-issued wage garnishment order imposed by creditors can place you in a precarious position. Such orders require your employer to deduct a specific sum from your earnings, channeling it to your owed party until the debt is settled. When confronted with wage garnishment, considering bankruptcy becomes a prudent step to explore.
Persistent expenditure exceeding income, despite efforts to cut back on non-essential outlays, can lead to recurring debt accumulation. Seeking legal guidance regarding bankruptcy becomes essential in such scenarios, as mounting debts tend to accrue interest over time, compounding financial challenges.
Relentless Creditor Calls
The engagement of debt collection agencies by creditors, with the intention of pursuing delayed payments, can subject you to frequent and intrusive phone calls. Consistent communication from multiple collection agencies serves as a red flag of financial distress, warranting consideration of bankruptcy and consultation with an attorney to address the issue.
Delinquency on Bill Payments
Late payments or the inability to settle essential bills, such as rent, mortgage, or car payments, due to financial constraints signify a precarious financial state. Relying on leniency from familiar lenders can be misguided. Seeking legal advice on bankruptcy can provide a more effective avenue to address financial challenges.
If any of these signs resonate with your situation, reaching out to the Austin Lawyer Referral Service can be instrumental in addressing your bankruptcy concerns. Our adept and experienced attorneys in Austin, Texas, and neighboring areas are available to provide guidance.
Contact the Lawyer Referral Service of Central Texas today for help finding a qualified lawyer who is right for you.
Since 1966, we have helped hundreds of thousands of Austin and Central Texas residents and businesses find the right lawyer to work tirelessly on their behalf and get the results they deserve.