Small amounts of debt can easily be conquered by simply cutting expenses each month and putting these savings toward the debts that you owe. However, taking this approach is far less likely to be successful if you have accumulated a significant amount of debt. This is because many of your debts will continue to accumulate interest and penalties until they are paid in full. Consequently, trying to pay off these debts a little at a time will often be difficult as your overall debt continues to grow despite the fact that you are making payments each month. Thankfully, it is possible to break this cycle with the help of a bankruptcy law attorney.
A bankruptcy attorney can help you to get your debt under control by assessing your assets, assessing your debts, determining what type of debt resolution is right for you, and helping you through your bankruptcy case if you choose to file with the court. Below you will learn more about each of these steps and how they can help you on your path to financial freedom.
Assessing Your Assets
There are several reasons why you must assess your assets before tackling your debts. For instance, some debt relief options will not be available to you if your assets are significant enough to pay off your debts if you were to liquidate these assets. Furthermore, some debt relief options will only allow for the protection of certain assets. Having this information in hand will allow your bankruptcy attorney to offer you the best possible advice. With their help, you can make the best possible decision for your specific financial situation.
Assessing Your Debts
Once your attorney has taken a look at your assets, they will turn their attention to your debts. When assessing your debts it is important to determine exactly how much debt you owe and find out what types of debts you owe and whether or not you expect to incur significantly more in the near future. This is an incredibly important part of deciding what your best option will be when trying to eliminate the greatest number of debts.
Considering Debt Resolution Options
There are several different debt resolution options that your attorney may suggest depending upon your specific situation. For instance, if you have a rather significant amount of unsecured debt but very few assets, your attorney may recommend that you file for Chapter 7 bankruptcy. This option will allow you to discharge a large portion of your debt while protecting your existing assets. However, if a large portion of your debt cannot be discharged as part of a bankruptcy claim, your attorney may suggest the use of a debt consolidation loan which will allow you to lock in a lower interest rate and eliminate multiple late fees each month. This way, you can start to effectively pay off your debt using your available liquid assets.
Filing For Bankruptcy
If you and your attorney determine that filing for bankruptcy is the right option, they will help you file the necessary paperwork with the court. They will also help you through each step of the process to ensure you eliminate as much debt as possible as part of your bankruptcy settlement. To get started on this process as quickly as possible, be sure to reach out to a bankruptcy law attorney in your local area today.
Contact a bankruptcy law attorney for more information.Share