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What You Should Do Before Declaring Bankruptcy
If you feel that you cannot pay your bills, then you may want to consider filing for bankruptcy. After all, bankruptcy is designed to help people protect themselves from losing everything to their creditors. However, bankruptcy is not always a simple “wipe the slate clean” financial maneuver. With bankruptcy comes a substantial reduction in your credit score and in some circumstances court-ordered spending restrictions. Although Bankruptcy may often times be the best solution to your financial troubles, it may not always be the first place you should look. Here’s a look at five steps that you can take before declaring bankruptcy.
Meet and Discuss Options with Your Attorney
The first thing that you should do is meet with your attorney and discuss any available options. An attorney will have more in depth knowledge about bankruptcy and bankruptcy alternatives. Also, your attorney may be able to refer you to someone who can help you better handle your financial situation.
The bottom line is that you do not want to handle this situation yourself. You will not only get professional guidance, but you could also save yourself the headaches and possible pitfalls that comes with dealing with the Bankruptcy Court.
If you are considering filing for Chapter 13 bankruptcy in Michigan, your next steps are to find an experienced Chapter 13 Bankruptcy Attorney you can partner with and receive a free consultation. A Chapter 13 Bankruptcy program will last from 3 to 5 years, it’s important you find the right person for your situation as you will be entering a long-term relationship with that professional.
Acclaim Legal Services was established to do one thing: help our clients find lasting debt resolution and restore credit. The founder of Acclaim Legal Services has been doing Bankruptcies and Re-organizations for over 25 years. Acclaim Legal Services is currently celebrating its 20th year being in business.
Calling us may be your first step towards finding financial freedom and peace of mind. At the free consultation, one of our experienced Chapter 13 lawyers will review your current credit, outstanding debt obligations and future financial goals to provide you with an in-depth analysis and recommended next steps.
We are here to answer your questions and provide qualified legal advice. Don’t delay getting your credit and life back on track – call us today at 866-261-8282 or schedule a free consultation
Maximize Income
People often inquire when considering filing for Bankruptcy, Should I do things to limit my income? I always encourage people to make as much income as they are able to generate. Providing financial security to yourself and your family is always paramount in any situation. Having too much income to qualify for a Chapter 7 Bankruptcy means that you may have to pay a portion of your debts under a Chapter 13 Plan. You may not be able to pay off all of your debts, but whatever is not paid (after you have given the program your best efforts towards the debt) is expunged at the end of the plan, just like a Chapter 7 Bankruptcy will expunge your debts. Never be afraid of making too much money or turn down opportunities to expand your income. Maximizing your income can not only help you pay off your debt, but will also put yourself in a more positive mental state.
Negotiate with Your Creditors
The big reason why you may be facing bankruptcy is that you cannot service your debt. Believe it or not, most creditors don’t want you to go into bankruptcy. That’s because some creditors know that they may not get paid or get pennies on the dollar for their debt. Therefore, you will want to negotiate with your creditors and offer a settlement payment or payment plan that you can handle. You may be surprised by what you can negotiate. Acclaim Legal Services can assist you in negotiating your debt also.
Reduce Spending
You will also want to consider ways that you can reduce spending. Chances are you have recurring payments that you are not even aware of. Be sure to look at all of your credit cards and payment platforms and eliminate any recurring plans that you don’t need. Additionally, find ways to cut expenses when it comes to grocery shopping, entertainment, clothing and other expenditures.
Consider a Debt Consolidation Loan
Finally, consider a debt consolidation loan. This is a type of loan where you take all of your debt and hand it over to one lender. You will then pay that lender to service all of your debt. Oftentimes a debt consolidation loan can help lower your overall interest rate which can make your debt more manageable. Always be careful not to take out secondary mortgages or other collateral loans to consolidate your debt. If you are struggling because of a lack of income and the monthly debt obligations are too great, swapping one debt for a secured debt may not help your overall budget scenario and may cause you to lose your collateral.
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I often email you guys with a load of questions or asking for things… but I wanted to take this time to say thank you for all you do. You guys work hard and have been extremely dedicated to helping me with the various things that have come up – even with those…
Prior to filing a Chapter 13 Reorganization, one of my biggest concerns was “how will this affect my credit?” After talking with one of the attorneys at Acclaim Legal Services, they showed me that a Chapter 13 would allow me to consolidate my bills based on my…
Over the past few years I have been working with Cindy Millns for my case. She has been so easy to work with and helpful, that I cannot express enough gratitude for her professionalism and courtesy during my troubling times. She took the time to answer phone…
Brian Rodriguez spent more than a generous amount of time with me on the phone. He answered all my questions and concerns. Your firm proves time and again that you care for your clients like family.
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