Do financial woes have you weighing the options of, bankruptcy or not? The decision to file for chapter 7 or chapter 13 bankruptcy is a big one. You want to take the time to consider your options an evaluate your financial situation and see what changes can be made before you make a final decision to file bankruptcy.
Bankruptcy Or Not?
There are several benefits to filing for bankruptcy:
- Fresh start – You will no longer be drowning in debt, you can take this opportunity to build a new financial future for yourself.
- Keep your assets – If you file chapter 13 bankruptcy you should be able to keep your assets after the bankruptcy is complete.
- Stop creditors – As soon as you file for bankruptcy the harassing creditor calls to your home will stop.
- Rebuild your credit score – Once bankruptcy is complete you can start rebuilding your credit score.
- Get your confidence back – Debt takes a toll on a person. It’s stressful and overwhelming. Releasing yourself of that debt takes away the burden and allows you to return to your normal life.
Reduce Your Spending
Talk to a Professional
There are solutions available to you if you decide to avoid bankruptcy.
Step 1 – Speak with a credit counselor –
This option needs to be explored early on in your financial troubles. Speaking with a credit counselor is a great opportunity to look at your finances and evaluate what you are doing right and where you can save money and spend more wisely. Everyone can benefit from speaking with a credit counselor.
Step 2 – Consolidate –
When you consolidate your existing debt you take everything you owe and put it together into one new loan. The interest rate on debt consolidation loans is often very good and ultimately will make your monthly payments smaller and more manageable. This could make a big difference in your monthly finances.
Step 3 – Debt Settlement
For those that want nothing else but to avoid bankruptcy, a debt settlement company may be the answer. If your debt is greater than $10,000 than you can reach out to a debt settlement company and hire them to negotiate your debt. Potentially they can convince creditors to accept a payment as low as 50% of what you owe. They will accept this partial payment and wash you of your debt. The benefit for them is that if you file for bankruptcy they may not even get 50% so it’s a last ditch effort for them to reclaim some of what is owed to them.
Ultimately, when you are deciding between bankruptcy or not you need to think of your personal situation and how you will be affected in the long run. Set up a meeting with a Chicago bankruptcy lawyer to discuss your options and let them educate you about bankruptcy law during a free legal consultation. This is a great opportunity to get your questions answered and weigh your options with a professional. It is also a good reminder that you are not alone in this life changing decision.
If you are in the early stages of considering bankruptcy, start by downloading our Free Guide: 12 Things You Should Know Before Filing For Bankruptcy. This guide will get you asking the right questions and preparing you for the first steps in the bankruptcy process.
DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Suburban Legal Group PC shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.