For many people, bankruptcy can be extremely intimidating. Sometimes it’s the right choice; sometimes you may have to focus on other debt solutions. And there are several out there.
Bankruptcy vs. Debt Counsellors:
Debt counsellors will work with creditors on your behalf to help consolidate your payments and reduce your monthly interest rate. That facilitates to taking the hassle of speaking with creditors off of your plate so you can focus on paying off the debt. Often, you have to have a certain amount of debt to qualify for some types of credit counselling and debt consolidation.
Be upfront and honest about your current expenditures. A Houston bankruptcy attorney can help you find ways to avoid bankruptcy, so he or she needs to know what you spend to recommend the perfect solution for you, which may not necessarily be bankruptcy.
Discuss all your debts and how far behind you are on your payments. Be honest, as this is the primary factor in deciding if bankruptcy is right for you. Are you close to repossession or foreclosure? How often are credit collectors calling you? How many months behind are you on payments? What’s the total amount of unsecured and secured debt that you owe?
Working with Creditors vs. Bankruptcy:
People often don’t realise that if they only talk to their lenders, most creditors will work with them to help them come up with a reasonable payment plan, or deferral until your personal circumstances improve.
Think about credit counselling. It is a requirement before filing for bankruptcy anyway, so bankruptcy lawyers will likely recommend giving it a shot before looking into bankruptcy. They will too let you know why you need a business lawyer for your business. Credit counselling is there to help you get a handle on your financial struggles, including how to save, not spending so much, and paying off your debts. Credit counselling could also be as simple as purchasing a reference or resource book that gives you an action plan to put into place to save and get out of debt without bankruptcy.
Look around your house. Maybe it’s time for a massive garage sale. Depending on how bad your situation is, selling some or most of your assets could be a viable option to help pay off your debt. Take a close look to see what you truly can make one settle in mind. Most times, there’s plenty that we don’t need or use. So sell it and save yourself the hardship of having poor credit for years to come because of bankruptcy.
Houston bankruptcy lawyers need to know as much about you as possible in regards to your financial circumstances to be in a position to best assist you. If you are not open and honest, then you may find yourself in a worst case scenario for you that could have neglected if you would have been honest with your attorneys early on. Also, you’re protected by attorney-client privilege, so you don’t’ need to worry about that aspect, either.