Declaring Bankruptcy Requires Professional Help
Those who are gravely in debt often feel they have little choice but to file for bankruptcy and start with a clean slate. However, filing for bankruptcy should be something that is done with the help of an attorney. Though it may give you the clean slate you desire, bankruptcy is a serious and complicated process that has long-reaching consequences.
How To Have a Successful Bankruptcy
Before filing for bankruptcy, take an in-depth look at your financial situation. Determine, to the best of your ability, your debt-to-income ratio. Rank your debts and financial responsibilities, separating your loan and/or credit card payments and monthly bills from your “luxury” or unnecessary bills, like gym memberships. If your essentials outweigh your income, you need to make drastic lifestyle changes, such as moving to a smaller, more affordable house or taking a second job. Begin by cutting unnecessary expenses, like eating out and your gym membership, and focus your extra cash flow on repaying your debts. Filing for bankruptcy will still require these lifestyle changes, so it is a good idea to see if you can reign in your debt by adjusting your lifestyle before filing for bankruptcy.
You may want to explore debt repayment options with the help of your attorney, as well. Consolidation debt with a loan can cut your payments up to half, making it easier for you to re-pay it. Generally, your creditors will be willing to work with you, especially if you show initiative. Sometimes creditors will receive nothing if an individual files for bankruptcy, so, they will generally work with you in the hopes of having the debt repaid in full. Make sure any repayment agreement is officially set in writing. Your attorney can help you understand the implications of any repayment agreement.
Discuss Your Options With Your Attorney
The consequences of filing for bankruptcy can be serious. Bankruptcy can affect your ability to secure loans, future rental options and buying or leasing a car. Depending on how you handle your bankruptcy filing, you could face much higher interest rate or payments on loans in the future. In most cases, people are better off seeking legal advice before filing for bankruptcy. The lawyers at Amerio Law Firm in Sacramento have years of experience aiding those considering bankruptcy in California. While they can certainly help you determine which bankruptcy is right for you, they can also offer many alternatives to bankruptcy. Before filing, talk with the experienced and knowledgeable bankruptcy lawyers at Amerio Law Firm.