Do you have several credit cards with large balances that you are only able to pay the minimum balance on every month? Are you behind on your home mortgage payments and worried the bank will start foreclosure proceedings? Is there a stack of medical bills on the desk at home that you have no idea how you’ll pay? These types of situations can be extremely stressful, but they don’t have to be with the right advice and planning. Many might think the natural answer to these questions is to file Bankruptcy but that’s not always the case. In fact, many of the consultations at the Law Office of Seth L. Hanson don’t end with the recommendation to file bankruptcy.
If you are undecided about talking with bankruptcy lawyer, there are a few things you should make sure that you’ve tried on your own first. These include:
Making a budget
Whether you eventually file a bankruptcy or not, making a budget and sticking to is crucial to getting your Debt problems under wraps. If you do decide to file, you’ll need this information for the trustee and your Bankruptcy Attorney anyways so best to go ahead and get it out of the way.
Sell your Assets
In most cases, you don’t lose all your property in a Chapter 13 bankruptcy and even Chapter 7 bankruptcies have some exemptions. However, selling some of your stuff to pay down your debt is something to think about.
This particular suggestion causes many individuals anxiety, but dealing with your creditors one-on-one and asking for a restructured payment plan or reduced payments can work…sometimes. Other times you get a flat out no. Since hearing ‘No” hasn’t killed anyone yet, it’s worth a shot and could have positive financial repercussions.
Consider Restructuring/Refinancing Your Home Mortgage
Along the same lines as negotiating with your creditors, some housing lenders may be able to work with you to reconfigure your mortgage payments under a new payment plan. Furthermore, you may be able to apply for a lower interest rate, spread out over a longer period. While this may end up costing more over the life of the loan, it could beat the alternative to losing your house.
Have a Free Consultation with a Bankruptcy Attorney
If you’ve budgeted, made sacrifices, maybe even taken on a second, part time job, hit up your family, and sold most of your possessions and you still can’t caught up…it’s time to sit down with a bankruptcy attorney to explore the other options. There are a lot of questions about your finances that you’ll want to have answers for and if you’ve done all the aforementioned steps, you’ll be better prepared to answer those. Additionally you’ll know you have done everything you possible can on your own before getting the help and advice from an expert in debt relief.
There are never two financial and lifestyle situations that are quite the same. There’s also no one-size-fits-all solution to debt reduction. If you have added up all your assets and they are less than the amount of debt you currently owe, then bankruptcy could be a saving grace that cures your financial problems. Bankruptcy Laws were invented to protect creditors. If you’ve done all you can on your own, you need to get the help of a trustworthy and dedicated Sacramento bankruptcy attorney to help relieve your debt-load.
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