While it may sound scary to have to file for bankruptcy, this kind of financial reorganization can be beneficial to individuals and businesses who have significant outstanding debt. It is helpful to do some research and look carefully at where your money is going before moving forward with a lawyer and bringing your case to bankruptcy court.
Do you really need to declare bankruptcy?
Before considering the possibility of filing for bankruptcy, it can be beneficial to take an inventory of your finances by looking and your recent income and the severity of your troubles. For example, someone who has only been unemployed for a few months may be able to pay all of their debts as normal if they find a new position. There may also be situations where someone has only missed a few payments, or is having short term financial problems that may be easy to fix. It may be best to wait to file and confirm that your financial problems will be serious and long term if any of these situations apply.
Some lenders and businesses that hold debt may be willing to negotiate and make a payment plan that is easy to follow. Although it may not be obvious, many companies would rather work with you than have to invest time and money on legal fees to try to collect debt through formal actions against you.
Basic budgeting skills
Going over all of your finances with someone who can help you make a budget can possibly get you through your financial problems without more drastic actions. Some people may be losing money through things like recurring memberships and services that they no longer need. Cutting back on expenses is one of the best ways to have more money available to service debt.
In many situations, a person will be required to go through credit counseling before they can bring their case to bankruptcy court. These agencies are usually able to contact companies on your behalf to renegotiate the terms of your debt as an independent third party. They can also create a budget for you as well. However, you should be careful to only use credit counseling services that are approved by the government, as some of them ask for sums of money up front and make grand promises related to your debt disappearing, which is a lie.
Decide what type of bankruptcy is right for you
If you do decide to go through with the bankruptcy process, it is important to know how to file and what type of bankruptcy applies to your situation. The different types of bankruptcy are given labels called chapters. Some of the are only for business debts, while other chapters are for individuals. For example, individuals who file for Chapter 13 bankruptcy may be able to keep their homes and other essentials as long as they have a steady source of income. A bankruptcy attorney in Florida can explain all of these scenarios to you more thoroughly.
Have a conversation about bankruptcy with a knowledgeable lawyer
To get help from a Destin bankruptcy attorney, contact ASG Legal. They will discuss what kind of filing will work best for you and offer additional advice to get through financial challenges.