The best way to avoid bankruptcy is to pay attention to spending habits and create a household budget. Unfortunately, unexpected tragedies can strike and quickly deplete financial accounts; leaving individuals unable to pay their bills or having to use credit cards to make ends meet.
Individuals attempting to avoid bankruptcy should invest time researching debt reduction solutions. The Internet provides a wealth of personal money management information. However, caution should be used before purchasing products or services claiming to reduce or eliminate debts.
Business Bankruptcy Attorney, Bankruptcy Attorney In Phoenix, Bankruptcy Chapters,
Consumers facing the decision of filing bankruptcy protection should seek advice from reputable professionals. New bankruptcy laws enacted through the Bankruptcy Abuse Prevention and Consumer Protection Act have made filing difficult and confusing. BAPCPA requires individuals and couples who petition the court to undergo credit counseling through an approved U.S. Trustee agency.
Credit counselors can sometimes help people avoid bankruptcy. In some cases, credit counseling agencies can negotiate with creditors to reduce outstanding balances, lower interest rates or eliminate late fees and penalties.
Debtors who elect credit counseling should consider working with one of the approved U.S. Trustee agencies. If they aren't able to prevent bankruptcy, they will have met the credit counseling requirements set forth in BAPCPA.
Debt consolidation might be a viable option for homeowners with accrued real estate equity. Homeowners take out a second mortgage using their home as collateral. Outstanding debts are paid off using funds from the home equity loan. Interest rates on home equity loans are considerably less than rates charged by credit card companies and can significantly reduce monthly payment amounts.
Many consumers use credit cards to pay for daily living expenses. This can add up to thousands of dollars in interest fees and create additional debt. When debtors are unable to pay credit card charges in full or only make minimum monthly payments, they are cheating themselves out of their own money.
Taking time to review where money is being spent can curtail unnecessary spending and potentially prevent bankruptcy. An easy way to calculate expenses is to carry a small notebook and record each expense. Most people are shocked to see how much money is wasted on things they really don't need.
Cost of living continues to rise, so it is crucial to be proactive and keep track of spending habits. Most utility companies offer budget plans which allow consumers to pay the same amount each month instead of having fluctuating bills. Many phone service providers offer bundle packages allowing consumers to pay reduced prices by combining telephone, internet and cable services.
Purchase basic cell phone plans offering free nights and weekends calls. Eliminate magazine and book club subscriptions. Take advantage of grocery coupons and shop at consignment or thrift stores for clothing, furniture and household items.
If debt has escalated to the point where bankruptcy is the only option, consult with three or four bankruptcy lawyers. Most law firms provide complimentary consultations to discuss available options.
Two types of personal bankruptcy chapters exist - Chapter 7 and Chapter 13. BAPCPA requires debtors to repay a portion of debts when possible. Prior to BAPCPA, many consumers filed Chapter 7 in order to have all outstanding debts discharged. Today, most consumers are required to file Chapter 13 bankruptcy and establish a repayment plan which must be confirmed through the court.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Declare Bankruptcy
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment