When Should You Call a Bankruptcy Attorney?
Bad things happen to good people.
Many people at one time or another in their lives find themselves in financial distress and unable to manage their debts.
Most of these people are honest, thrifty, hard-working, folk who have encountered a crisis in their lives which results in financial distress.
A few examples of these crises include a job loss, death, disability, and divorce.
People who are unable to pay their monthly bills and still cover their daily expenses for basic necessities often look to credit cards as a short-term solution.
The debt problem gets even worse when a person misses a payment on a credit card, or even makes a payment which misses the due date by a couple of days, or the credit card issuer decides to freeze or even lower the credit limit on the card.
The first problem is that the credit card company raises the interest rate to almost 30% per year, and if a payment is late, tacks on a $39.
00 late payment fee.
Then if those tacked-on charges cause the balance on the account to go over the credit limit, the credit card company will tack on an additional charge of $39.
00 as an over-limit fee.
The person quickly gets deeper and deeper in debt.
When credit card balances get "maxed-out" individuals will occasionally take out a second mortgage or home equity line of credit which is used to pay off credit card balances.
However, if a persons expenses continue to exceed their income, the person will often find himself or herself again running up credit card balances.
It is a recipe for disaster eventually.
For most families, their monthly mortgage payment is the largest check they write each month.
In order to get their income and expenses back in balance, they need to reduce their mortgage payment.
This has to be accomplished either by selling their home or making some arrangement with their mortgage company.
The problem with obtaining debt relief on a mortgage is that before a mortgage company will agree to modify a loan, the loan must be in default.
That is, before a mortgage company will discuss any kind of relief, the individual has to be in a position where the mortgage company can foreclose against your home.
Then in order to obtain relief there is the voluminous paperwork, the delays by the mortgage company and the personnel changes.
It is not unusual for a mortgage company to post a home for foreclosure at the same time that the owners are attempting to work out some kind of debt relief.
Unfortunately, most people may not know where to turn to in these situations and are unaware of the solutions available to them.
Knowing your options can help you make informed decisions.
It is at this point where the United States Bankruptcy Code will provide some real, welcomed relief.
Despite what creditors and their nasty bill collectors want you to believe, filing for bankruptcy is not a failure.
On the contrary, it is your legal right.
No one sets out in life to get behind in meeting their financial obligations, it just happens.
Regardless of which chapter of the Bankruptcy Code a person files, the filing itself immediately stops the harassing telephone calls, the threatening letters and brings any foreclosure action (regardless of whether its a house or a car that is being foreclosed upon) to a dead stop.
This allows the individual to take a deep breath and begin to figure out their best course of action to get their life back on track.
Need more information about whether to consider filing bankruptcy in Texas?
Many people at one time or another in their lives find themselves in financial distress and unable to manage their debts.
Most of these people are honest, thrifty, hard-working, folk who have encountered a crisis in their lives which results in financial distress.
A few examples of these crises include a job loss, death, disability, and divorce.
People who are unable to pay their monthly bills and still cover their daily expenses for basic necessities often look to credit cards as a short-term solution.
The debt problem gets even worse when a person misses a payment on a credit card, or even makes a payment which misses the due date by a couple of days, or the credit card issuer decides to freeze or even lower the credit limit on the card.
The first problem is that the credit card company raises the interest rate to almost 30% per year, and if a payment is late, tacks on a $39.
00 late payment fee.
Then if those tacked-on charges cause the balance on the account to go over the credit limit, the credit card company will tack on an additional charge of $39.
00 as an over-limit fee.
The person quickly gets deeper and deeper in debt.
When credit card balances get "maxed-out" individuals will occasionally take out a second mortgage or home equity line of credit which is used to pay off credit card balances.
However, if a persons expenses continue to exceed their income, the person will often find himself or herself again running up credit card balances.
It is a recipe for disaster eventually.
For most families, their monthly mortgage payment is the largest check they write each month.
In order to get their income and expenses back in balance, they need to reduce their mortgage payment.
This has to be accomplished either by selling their home or making some arrangement with their mortgage company.
The problem with obtaining debt relief on a mortgage is that before a mortgage company will agree to modify a loan, the loan must be in default.
That is, before a mortgage company will discuss any kind of relief, the individual has to be in a position where the mortgage company can foreclose against your home.
Then in order to obtain relief there is the voluminous paperwork, the delays by the mortgage company and the personnel changes.
It is not unusual for a mortgage company to post a home for foreclosure at the same time that the owners are attempting to work out some kind of debt relief.
Unfortunately, most people may not know where to turn to in these situations and are unaware of the solutions available to them.
Knowing your options can help you make informed decisions.
It is at this point where the United States Bankruptcy Code will provide some real, welcomed relief.
Despite what creditors and their nasty bill collectors want you to believe, filing for bankruptcy is not a failure.
On the contrary, it is your legal right.
No one sets out in life to get behind in meeting their financial obligations, it just happens.
Regardless of which chapter of the Bankruptcy Code a person files, the filing itself immediately stops the harassing telephone calls, the threatening letters and brings any foreclosure action (regardless of whether its a house or a car that is being foreclosed upon) to a dead stop.
This allows the individual to take a deep breath and begin to figure out their best course of action to get their life back on track.
Need more information about whether to consider filing bankruptcy in Texas?