Bankruptcy and Debt: What you should Know

If you are in debt over your head, are stressed out, at risk of loosing your home and being harassed by your creditors you should know that bankruptcy is not your only option. In fact, bankruptcy is always your very last option. You should contact a bankruptcy law firm who can help you figure out what options you might have in your particular situation. If you are not quite ready to hire an attorney and file, that is fine! Here are a few things you should know about debt and how to get out of it without filing for bankruptcy.

You should seek bankruptcy debt counseling as soon as you experience financial difficulties. If you get behind on making payments and late fees are starting to pile up, it is time to talk to a bankruptcy attorney. This does not mean that you need to file, or even that you are consider filing for bankruptcy. The earlier you get advice and counseling from a bankruptcy attorney or debt specialist the more likely that you can get help that will keep you out of bankruptcy.

If you are behind on your payments do not ignore it, call your creditors! It probably seems easier to just ignore their phone calls. You get paid next week and you can make the payment then. Or maybe you are ashamed and assume your creditors will be rude and just demand a payment with out listening to the fact that your car broke down and your child was in the hospital. But you should always call your creditors if you are having trouble making just one payment. While lenders do want you to pay on time, they really do not want you to file bankruptcy. In bankruptcy, the money you owe is only partially paid back or is discharged completely with no payment at all. That means that the lenders get only a percentage of what you owe or nothing at all. It is in their best interests to work with you.

Bankruptcy is not just an easy way to get out of paying bills you could afford if you cut back or worked over time. Bankruptcy will affect your credit and other aspects of you life for years. It may make it difficult to get a job if you work in a field that gives you access to large amounts of money or sensitive materials. You will not be able to borrow any money for a while. Ever person’s situation is different and you should contact a bankruptcy attorney to figure out how filing might affect you and your family.

Nearly all of the money owe can be wiped out with bankruptcy debt discharge. You cannot discharge back child support payments, back owed federal taxes, federal student loans or money you owe due to a lawsuit filed against you. Which means you can discharge medical bills, credit card bills and any other unsecured debt you might have.

If you are considering bankruptcy and live in Miami, you should contact a bankruptcy attorney in Miami who is qualified to help you with the filing. It is also important to realize that there are other options available to you and bankruptcy should be your last resort.