The inability to pay your bills can be a huge source of stress. Not surprisingly, financial troubles are one of the leading causes of divorce. It’s important to get your finances under control quickly to avoid major issues in your life. When you are unsure how to take care of the problem on your own and creditors are calling you constantly asking you for money you don’t have, it’s time to contact a Bankruptcy law firm.
The United States bankruptcy code offers options for people in your situation, to help you get back on your feet. Whether you use Chapter 7 to eliminate all of your credit card and medical bills, or Chapter 13 to reorganize your debts so you can afford to make the payments, you are likely to find relief. Be sure to tell the lawyer about all of your debts, your assets, and your current income. Your lawyer can then apply the means test to determine if you qualify for Chapter 7 bankruptcy, or if you will have to use Chapter 13 to get out of debt.
It is important to weigh all of your options prior to filing for bankruptcy protection. The fact that you filed will remain on your credit report for up to 10 years and can reduce your ability to get credit cards, mortgage loans, and good rates on insurance. If you’ve tried other methods to reduce your debt or you simply will not have enough money to pay your bills in the foreseeable future, bankruptcy might be the best choice for you. Chances are, if you have been unable to pay your bills for a while, your credit score is already pretty low and a bankruptcy filing will not cause it to drop much further.
An attorney at a Bankruptcy law firm may explain the advantages and disadvantages of bankruptcy. You will also learn about alternatives at a mandatory credit counselling session that you must attend prior to filing your documents with the court. A second counselling session before your debts are discharged will teach you ways to manage your debt so you won’t get into the same financial bind again.
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