There are times when financial debt becomes so large that it overwhelms you. If you or a family member have had a medical emergency that required long-term care, you may be looking at tens of thousands of dollars in hospital and treatment costs not covered by your insurance company. You may have had a disaster hit your home, such as a fire or flood, from which you can’t easily recover. Perhaps your company or your industry has been hit by the long-term economic downturn and you’ve been without a job for months or even years. In these cases, you may feel your options are nearly non-existent. You do have some choices, however.
Many financial experts recommend talking with your creditors as soon as your realize you don’t have the resources to pay your bills immediately. Some of your creditors might be willing to accept a lower repayment amount over a longer period of time. You could also consult a credit counseling service that could act as the middleman between you and your creditors by advocating for a realistic repayment plan. If you have built up equity in your home, you might want to think about using it as a source of repayment funds, although this can be a very risky option. If you can’t repay the loan, you may lose the house.
You might have exhausted all other options and fear that your only choice is bankruptcy. However, bankruptcy isn’t the stigma it once was. While you’d really prefer to not have the debts that have led to bankruptcy in the first place, you can use one of two personal bankruptcy options to help you find your way through your financial problems. A Riverside Bankruptcy Attorney can help you determine whether Chapter 7 or Chapter 13 bankruptcy is the best choice. Chapter 13 bankruptcy, which many people prefer, allows you to repay debts over a period of up to five years, whereas Chapter 7 requires you to repay your debts as soon as possible after you’ve sold many of your possessions.
Winterbotham, Parham, Teeple, a PC is a Riverside Bankruptcy Attorney that is prepared to help you determine which type of bankruptcy protection will help you get back on your feet financially. With the help of careful and expert planning, this experienced firm can help you retain as many of your possessions as possible while you get a new financial start.
