While bankruptcy can help debtors in the long run, it should not be their first option. They should only file for bankruptcy when they need the relief, and there are no other ways to get out of debt. There are a number of things that people can explore first before making a bankruptcy filing.
The first thing is to negotiate with creditors to restructure debt. Some creditors could give you more time to pay or reduce your debt because they realize they would get far less if you declared bankruptcy. This may buy you some time to begin to get back on your feet. You would be surprised what some creditors may do when you ask.
Try Credit Counseling to See if it Makes a Difference
You can also work with a credit counseling agency to get help with your debt situation. One thing that people struggle with before bankruptcy is the hopelessness that comes from having debt and no plan to reduce it. A credit counseling agency can help you put in place a plan that can improve your financial situation. Not every situation is as hopeless as it seems when you have a commitment to bettering your situation and some expert advice.
You can also explore a debt consolidation loan as a means towards reducing your payments if it makes financial sense. This replaces several loans with one loan that has a lower interest rate. Be careful and make sure that you understand the terms and conditions of these loans.
Experienced Georgia Bankruptcy Lawyers
If you find yourself deep in debt and want to know your options, you should speak with a bankruptcy attorney. Call Moffitt Law LLC at (762) 212-3951 or contact us online to discuss your financial situation and whether the bankruptcy laws can help you.
Can creditors call me whenever they want?
Federal law places limits on when creditors can call you, and you can tell them to stop.
What types of bankruptcy are there?
For individuals, you can declare Chapter 7 or Chapter 13 bankruptcy.
Is granting a bankruptcy petition automatic?
No, the court would need to review your filing and the circumstances of your situation first.