A Bankruptcy Lawyer’s Blog

When is it Time to Contact a Bankruptcy Attorney?

For many people, before arriving to the conclusion that they need to file for bankruptcy, they first go through a few steps or stages. They first go through a number of stages where they are essentially attempting to avoid filing bankruptcy, which they consider is their final demise, or what is called throwing in the towel.

In the first stage people generally realize their bills are greater than their income and her spending habits are too high for them to afford. They start thinking of ways they can cut down on their spending. Not going out for dinner as much, spending less on clothes, maybe renting movies rather than going to a theater etc.

By the second stage they realize simply cutting down their spending habits is not enough and they still cannot afford to pay their bills. Many know little about the law, do not know really even how to file for bankruptcy and generally shudder at the very thought of actually filing bankruptcy. So at this stage they begin to borrow money in an attempt to pay their debts.

Here people start looking into the possibility of refinancing their existing mortgage and trying to pull cash out to pay their bills. When this fails and they realize they do not qualify, they may begin to try to get cash from their credit cards. When attempting to take a cash advance on a credit card, one will find out that credit card companies charge exorbitantly high interest rates. Still in an act of desperation people take out the cash advances even at these high rates to pay off their other bills.

When credit cards are maxed out, in a last-ditch effort to avoid filing bankruptcy, people turn to their family and friends for loans. Finally after borrowing all they can from family and friends, the concept of a chapter 7 and chapter 13 starts to set in.

Only at this stage do most people contact a bankruptcy attorney. By waiting and borrowing more money from family and friends it will only make your situation worse. What most people do not know is you can get a free evaluation online. After completing a evaluation online, you will be able to move forward with a lawyer near you and get a free bankruptcy case review.

Jay King is a owner of BankruptcyIntro.com. We’ve all heard of large companies filing for bankruptcy or “going bankrupt” and most of us would think that particular company must be in trouble.