When & Why You Should Seek An Attorney Because of Your Debt

There is a stigma around debt, but we can get past that right now. Being in debt does not automatically mean you are living beyond your means or that you didn’t plan properly. Very few people can afford to buy a home, an education, or even a car without taking on a level of debt. 

Most people would argue this is good debt because these things are investments in your future. When you have a baseline of debt, what happens when something unexpected occurs? This could come in the form of losing a job or having a medical issue that presents you with bills you cannot afford to pay (or your insurance won’t cover). 

There’s also the issue that the cost of living is increasing faster than the average household income. 

Why You Need an Attorney

Filing for either Chapter 7 or Chapter 13 bankruptcy is a process, and it is one that you likely don’t have any experience with. By allowing an attorney to guide you through the process, you can ensure that you are taking advantage of every opportunity the law affords you. For instance, some of your assets and property are going to be exempt and cannot be taken.

Filing for Chapter 13 requires you to formulate a repayment plan that will last for the next several years. An attorney will not only be able to explain to you how one works but can properly draft it for you as well. 

Do You Have Any Loans?

This is another factor that will heavily influence your decision about whether to pursue legal counsel for your bankruptcy proceedings. If you rent an apartment, own your car (or don’t have one), and are living with basic, everyday things, then maybe you can proceed without an attorney. 

When you move forward without an attorney, you will be the one responsible for detailing how much money you make, what you are spending it on, and who you owe money to. Regardless, you should seek legal advice because the risk to you and your future is too great.

However, most people are living under some level of debt. Some of the things we outlined at the start are things that most people have. This includes home loans, car loans, and student loans. These are the types of financial burdens that drive people towards bankruptcy. There comes a time when you have to choose between financing your living expenses and repaying your loans. 

Maxwell Dunn PLC 

Living under debt that you cannot afford to repay is a burden that is difficult to carry. There is a constant worry about losing your home or having your assets repossessed. If you are considering filing for Chapter 7 or 13 bankruptcy, let the attorneys at Maxwell Dunn PLC guide you through the process. We can learn about your specific situation, and then we can decide what the best course of action is for you and your future. Contact us online today.