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Bankruptcy Is Not The Only Option

Filing for bankruptcy is a serious decision to make because it affects your financial life for a long time after. Before filing, make sure you review all your options to avoid filing and also how best to file with the United States government.

Considering bankruptcy as an option to get out of debt is a very delicate decision to make. It will affect your credit score and your ability to secure new loans and investments in the future. Before making the decision, review the three major ways to file but also seek out other options with your debtors before you make the commitment to file.

The United States government has three different ways to file. Chapter Seven deals with liquidation of assets in order to pay off an individualís debtors. When most people think about bankruptcy their mind immediately goes to this kind of deal. This is a difficult process to endure because all of your assets including your home, your car, and your investments are reclaimed and sold off in order to pay of your loans, mortgages, and personal credit card debt.

For corporations or businesses filing for bankruptcy, you would be filing under Chapter Eleven. In this case, a plan would be set up between your debtors to reorganize so you can continue running the business while paying your creditors over time. In Chapter Thirteen, itís pretty much the same process as in eleven but for individuals in debt. If you have regular income but you still canít handle paying off your bills with regularity, this is one way to file that would not be as detrimental to your life as Chapter Seven.

There are ways to avoid filing for bankruptcy. If you are in serious credit card debt, there are several companies that help consolidate your debt into a low monthly payment. Be aware that these companies will help certainly help you in the short run, but be sure to inquire about interest rates. A low monthly rate may mean paying off a few thousand more in the future as you get back on your feet. Several credit card companies still negotiate payment plans with their customers. One option is a payout if youíre willing to pay off a major portion of your debt all at once. They may also offer to lower your interest rate for a year or more while you recover.

If youíre having trouble with your mortgage, you can refinance your home or business with a different bank. Chances are when you signed your first mortgage, you may have not realized the fine print left a lot of room open for interest rates to rise rapidly. In looking for a refinancing company, be sure to really understand what youíre getting into. It may be a good idea to have a lawyer review it before signing.

Lastly, you can financial advisor to seek out options that might help you. They can look at your overall financial profile and be able to advise you on the best decision possible. Donít feel overwhelmed! A lot of people are lost and confused and very sensitive when they understand just how in debt they are. Youíll need to understand where you are and how to proceed. Bankruptcy is an optionFree Articles, but itís not the only one.

Source: Free Articles from ArticlesFactory.com

ABOUT THE AUTHOR


Are you facing a huge landslide of debt coming your way soon? If so, you should consider your options, as there IS a way out of this mess. If you need consultation with filing for new orleans bankruptcy, click here to learn more: www.menszerlaw.com.



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