If you have been struggling to pay your debts, consulting a bankruptcy lawyer will help you make the right decision as to rather you should move forward in filing for either Chapter 7 or Chapter 13, If you qualify for Chapter 7 this will wipe out all your debt obligations; in Chapter 13 you will only be required to repay some of your debts for a period of up to 5 years. Your lawyer will advise you as to which is the best option for you to file according to your financial situation, however if neither one is the right option for you then he or she will still be able to offer other services, such as debt settlement or counseling services. In addition to which filing or services you choose it is also wise to seek the advice of a lawyer to help eliminate the stress and anxieties of dealing with your financial crisis on your own.
When you can’t pay your debts you risk defaulting on your secured loans such as your mortgage which is your biggest investment that you can’t afford to lose. It is possible that filing for bankruptcy can prevent foreclosure even if the process has already been started. Also, if you have any automobile loans you can’t pay you might be able to stop your vehicle from being repossessed.
If you find yourself avoiding your lenders because you cannot pay your debts then another answer to your question is to prevent losing all your assets. Filing for bankruptcy will keep the lenders from taking you to court and it will also prevent wage garnishments and other legal actions that you won’t be able to avoid even if you attempt to ignore them.
Credit card debts can be another reason to file for bankruptcy when you have maxed out on all your cards and can’t keep up with the minimum payments. When you miss payments and deadlines credit card fees can push you further in debt which you will end up owning more than you could ever pay. Consulting a bankruptcy attorney will help result in getting your debts discharged.
Although no one wants to have to file for bankruptcy sometimes that is the only option in getting your financial situation back on track. If you can’t see getting out of your debts in 5 to 7 years then it is a good idea to consult a bankruptcy lawyer for assistance. Filing for bankruptcy will affect your credit score however if you pay your debts on time after filing it will likely improve within a few years.
To get a better idea of your overall financial picture you need to compare the ratio of your monthly expenditure to your income. If your monthly expenditure is more than your income you could be getting yourself into debt without realizing it. For more information on how you can improve your financial situation, visit BankruptcyAttorney.com