Bankruptcy Lawyers will tell you that filing a petition for bankruptcy can be complicated. Bankruptcy must be always considered as the last resort. Employers can refuse to employ you. You can be refused loans and credit for buying a home or even declined an insurance policy.
When you are struggling to pay the bills and are drowning in credit card debt, bankruptcy may be your only alternative. Bankruptcy lawyers can inform you about some other options that can be available to you. Through debt settlement you can pay off some of the dues of your creditors, and pay less than the amount owed by you. Debt consolidation is another option that allows you to combine the outstanding debt into a single manageable amount. A last resort option is discharging all your debts by filing for bankruptcy.
The most common chapters to file under the Bankruptcy Code are Chapter 7 and Chapter 13. Chapter 7 allows you to discharge all unsecured loans, while retaining your major assets like home and car. Current laws make it increasingly difficult to file a petition under Chapter 7. Alternatively, your bankruptcy lawyers might suggest you file under Chapter 13. By consulting with bankruptcy lawyers you can make an informed choice of how to proceed and bring back your financial security.
Sometimes sudden expenditures can strike without warning. An unexpected divorce petition, sudden job loss or expensive medical bills for a sudden illness can cause you to lose your financial stability. If you fall behind in mortgage payments, make an appointment with your lender and explain the situation to avoid foreclosure. Most often lenders will give you time and consideration to pay off your outstanding dues, if they believe your situation is temporary. Mortgage lenders can also change the terms of repayment by extending the time in which to repay your monthly installment.
There are a number of ways to seek relief from auto loans and other loans, if your lender is willing to consider your financial problems. Instead of heading for the courts, talking to your lenders always helps.
Auto loans and mortgages are secured loans. Failure to repay these can lead to the repossession of your vehicle or the foreclosure of your home. Loans like credit card bills, medical bills and signature loans are termed unsecured, as they are not backed by collateral. If you are afraid of impending foreclosure and other drastic measures, bankruptcy lawyers can advise you on the action you can take to restore your financial health.