There are many things that you may be able to do to work out your financial situation. If you’ve fallen behind in your credit card payments, car payments or perhaps your mortgage, you can often reach out to your creditors and work out arrangements. However, if you’ve been behind in your payments for an extended period of time, your creditors may be passed the point to where they’re willing to negotiate. If you’re being threatened with lawsuits or foreclosure because of outstanding debts and you can’t seem to get current, you may need to File Bankruptcy.
The first thing you’ll need to understand is that filing for bankruptcy is typically the last option you have. When you speak to experts on bankruptcy, many of them will tell you that you want to exhaust every possible alternative before considering bankruptcy. However, if you’ve done that and the only thing left for you is bankruptcy, there are things you need to consider.
The first thing is you’ll need to consult with a bankruptcy attorney. An attorney will take a brief overview of your financial situation and recommend the type of bankruptcy that best suits your needs. If you fall under a certain income bracket, they may suggest filing for Chapter 7 bankruptcy. This is the type of bankruptcy that allows the courts to discharge a number of your debts allowing you to start over. While it won’t discharge debts like car payments or mortgage payments, it can give you the leverage necessary to negotiate with your lender in order to get current with your payments.
If you make a certain amount of money, you may have to file for Chapter 13 bankruptcy. This type of bankruptcy allows you to renegotiate with your creditors via a court ordered payment plan. This can help you to pay back your debts within a span of 3 to 5 years. This type of bankruptcy will also cause the least amount of damage to your credit report.
As you can see, if you’re in a situation where you have to File Bankruptcy, legal advice is going to be invaluable. If you think you’re getting to the place where you need to consider bankruptcy, a quick visit to can help you answer any questions you have about bankruptcy.
