Bankruptcy is often the only way out of a bad debt situation. Many people borrow more money to attempt to pay down debt, from their home equity, from retirement accounts or even relatives... a temporary fix and the long run picture doesn't change or worsens. Ask us before you make more mistakes!
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Get control: sometimes you need bankruptcy to stop creditors from taking your home, car or other assets. Prepare for getting help.
Get professional help. Without bankruptcy, your creditors can take full legal action to collect on debts, including home foreclosure, repossession, seizure, garnishment, freezing bank accounts, etc. Chapter 13 is a debt payment plan that restructures or reorganizes debt and often reduces payments. Chapter 7 is for people that cannot afford a payment plan even at lower rates. Chapter 7 cancels most debts but only a qualified attorney can advise you if you are eligible for either chapter and what affect filing will have on the kinds of debts you have and on your assets.
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Prepare for the interview
Prepare a typical household budget of your income and expenses. Are you just getting by? Can you afford to pay anything and if so how much? Prepare a summary of your assets and debts. Do you have home equity? Your assets need to be protected and bankruptcy is often the only way. The attorney should ask about all assets, all debts, how much income do you earn, and what expenses do you need to pay for living expenses. Only after gathering and working through the details of your situation will the attorney be in a good position to advise you on your best options and your needs for legal action such as filing bankruptcy to give you the help you need.
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Interview with a qualified and experienced attorney
Some interviews are free overviews of bankruptcy while in depth reviews usally cost a bit but are worth it. A half hour consultation is sometimes enough to get some ideas about what to do but if you own property, a business or have high income or high debt amounts, be prepared to pay for some quality time with the attorney. Your advice will be more specific and you will have more to work with in planning your fresh start. When the interview is over, you will know what you should do. Ask yourself if what you have been told makes sense, is the attorney experienced enough, and trustworthy. Filing bankruptcy is a major decision but also can give you the permanent debt help that you need if the case is prepared adequately. Act on the advice and don't procrastinate. The longer you put off the inevitable, the longer it takes to get your credit re-established again. And know that there is light at the end of the tunnel.
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