Avoiding Bankruptcy: Find out if it’s Possible for You

Photo courtesy of Davi Sommerfeld

If you’re at the point where bankruptcy appears to be the only option you have left – be sure that you have truly exhausted all other options and made all attempts to settle your debts through alternative means.  Many times, people filing for bankruptcy don’t realize that they have options.  Seeking the help of a qualified bankruptcy attorney is one way to find out what all of your options really are.

Did you know that a bankruptcy attorney can often negotiate debt settlement deals with your creditors, enabling you to stay out of bankruptcy?  It’s also possible to re-negotiate the terms of your mortgage with your bank or mortgage company with a mortgage refinance.  If you aren’t sure how to go about doing this, or who to contact, once again, a bankruptcy, or credit repair attorney, can be your best friend in this situation.

Prioritize your debts.  Make sure you are paying your mortgage and car payments first, rather than doling out money to credit card companies every month.  Even though credit card companies can be quite aggressive when it comes to collecting their money, it’s much more important that you stay up to date on your home loan and vehicle payments than on your credit card debt. In order to keep yourself from filing bankruptcy, you need transportation so that you can go to work and keep getting a paycheck, and you also need somewhere to live.

In those moments when bankruptcy seems like a good idea, remember that it is going to destroy your credit score for at least seven years and will have lingering effects for ten years or more.  Although many of your debts will be erased, it will be very difficult and sometimes impossible for you to obtain any sort of loans or make any large purchases during that seven to ten years after your bankruptcy discharge is issued. Even getting a bank account or a credit card will be a huge challenge.  You will likely lose your car and possibly even your home.

After bankruptcy, buying or renting a place to live is also very difficult because lenders and even landlords now are very choosy about their debtors and renters.  Credit scores are checked by everyone these days, and the effects of filing for bankruptcy may even reach your employer or a future potential employer if you are looking for work.

Financial advisors and credit repair attorneys are usually of the opinion that filing for bankruptcy should literally be your absolute last option, a ‘Hail Mary pass’, so to speak, because bankruptcy presents so many problems of its own.

Many talented financial advisors and credit repair attorneys can help you find your way around filing for bankruptcy, even if you think there is absolutely no way anyone could help you out of the financial mess you are currently in.  Perhaps you’re thinking that you couldn’t even afford to pay a professional to help you, so why bother?  The good news is that the best advisors and attorneys who deal with these matters want to help people like you, and they will find a way to help you that stays within your budget.

If you’re on the verge of filing for bankruptcy, think twice.  It may very well not be your only way out.

 

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2 Responses to Avoiding Bankruptcy: Find out if it’s Possible for You

  1. Pingback: Can I Still Use My Credit Cards After a Bankruptcy? | Veitengruber Law

  2. Pingback: Sometimes Bankruptcy isn’t the Answer | Veitengruber Law

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