There are people who are haters in this world, and then there are the people who put their heads down and get to work. You get to choose each day which type of person you get to be. However, when debt creeps into your life, or when you are flung into emergency situations through medical problems, job-loss, or other issues, it can quickly feel like there are few ways out.
Bankruptcy Could Provide the Powerful Defense Against Debt
Many people receive lawsuits for old debts such as old credit card accounts which have been sold to collection companies, many of which are actual collection law firms. To find out about your situation, the attorney will ask a series of questions about whether you have any looming, urgent issues such as:
Once the Attorney Determines More About Your Situation…
Armed with information, the attorney is in a better position to help you learn more about your specific options in order to have a fresh start. Problems come and go, but if you take charge of your future, you will have the opportunity to move forward fresh by filing bankruptcy.
You Can Overcome Financial Difficulties
After filing bankruptcy, you do not need to stay broke forever. In fact, if you have protected assets such as a home, car, 401k or other retirement account, and even cash up to $12,000 in some situations, you do not need to give these up in order to file bankruptcy. After a careful analysis of your situation, you could receive valuable guidance from your bankruptcy lawyers.
Persist Beyond Your Financial Woes
The key to financial peace comes in following a handful of financial principles after filing bankruptcy.
- Always spend less than you earn
- Set money aside in savings every month
- Diversify your investments
- Pay off all secured credit lines such as home and vehicles
- Fail twice, try a third time. Fail 10 times, Try again an 11th time! I.e. never give up, persistence can pay off in your favor.
Some extra benefits that are realized when someone files bankruptcy include being able to move beyond your financial woes. Chapter 7 bankruptcy is the type of filing that involves a fresh start. You get a new chance to explore the world without having to have your old mistakes and debt trail around and follow you. It is the equivalent of having a forgiveness in your life financially.
For others, a chapter 13 makes more sense if you need to catch up late payments on a home mortgage or a vehicle loan. Some of the worst lenders are difficult to work with an clients will consider the option of running their entire auto loan through the chapter 13 repayment. The reasons this could be beneficial might be to lower the interest rate, cram down the balance on the loan, or simply to be rid of having to work with the lender in the future. Instead payments go to the trustee’s office instead of having to deal directly with the auto financier anymore. It is no cake walk, but a Ch. 13 could be just what you need to get things back on track.