Jan 212018

The thought of bankruptcy has brought feelings of anxiety and fear into the lives of many people. Mounting debt, combined with insufficient support for the family, is a horrible experience for a large number of people. If these are issues that plague you, you will find this article full of helpful advice.

Don’t look at bankruptcy as a first step. Look at all the other options you may have first. You have better options. For example, you could try credit counseling. Be certain that bankruptcy is the only option you have before pursuing this course because bankruptcy is always evident on your financial and credit history.

Do not use your retirement fund or savings to pay off creditors. Retirement accounts should never be touched if it can be helped. Though you may need to use a bit of your savings, try hard to maintain some of your reserves so that you have some degree of flexibility going forward.

Once a person’s debts outstrip his or her ability to repay them, bankruptcy may be the only option left. If you find yourself going through this, you should know all about the laws that are in your state. You will find that each state has their own bankruptcy laws. For example, whether or not you can keep your home, as well as what you need to do to keep it, is different for every state. It is best to become familiar with your state’s laws regarding bankruptcy before you take the steps to file.

Chapter 13 Bankruptcy

Thing about filing a Chapter 13 bankruptcy. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. Expect to make payments for up to 5 years before your unsecured debts are discharged. However, if you are unable to properly commit to the plan you agree to, your case can be dismissed.

Before you file for personal bankruptcy, weigh all of your options. Consult with a bankruptcy attorney to see if an interest rate reduction or debt repayment plan is an alternative to filing for bankruptcy. Various loan plans out there can be a lifesaver if you’re facing a foreclosure. A good lender will be able to assist you in a variety of ways, from getting rid of your late charges to reducing interest rates. You may even be able to get a loan extension, giving you the extra time you need to pay your debt off. When all is said and done, the creditors want their money, so sometimes it’s best to deal with a repayment plan than with a bankruptcy debtor.

Don’t use a credit card to pay off your taxes before filing for bankruptcy. Generally, this type of debt is not covered by bankruptcy filing, and you will still have a large debt owing to the IRS. A common rule is that dischargeable tax means dischargeable debt. So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.

People who say that bankruptcy is a scary experience aren’t exaggerating. You may have lived in fear of it before, but you no longer have to now, thanks to this article. Take this advice to heart, and do everything possible to improve your situation.

Why Consent Judgments are Evil

Are you making a big mistake by negotiating a debt settlement with your credit card company? At first glance, debt settlement can make a lot of sense - you can avoid bankruptcy while at the same time settling your debt for less than 100%.

But debt settlement has consequences, as I explain in this video. One of the biggest problems will be the credit card company’s insistence that you agree to a consent judgment

Consent judgments offer protection to the credit card lender or collection agency but can cause long term problems for you. Learn the full story here and always consult with a lawyer before signing any debt settlement document.

As always, Ginsberg Law is here for you if you need advice about handling unmanageable debt using bankruptcy or non-bankruptcy options. Call our office at 770-393-4985 or schedule a confidential consultation with Jonathan or Susan.

Our quick “two page” questionnaire is here: http://www.bankruptcyworksheet.com/get-started/two-page-bankruptcy-worksheet/. We’re ready to get started when you are.

Jonathan Ginsberg
Ginsberg Law Offices

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