Unfortunately, bankruptcy is often a last resort for many people rather than being one of several options they are considering to resolve their debt problems. This could be that bankruptcy is still often viewed in negative light and a drastic measure. It could be that some people believe that if they file bankruptcy they will lose their property and never be able to qualify for credit again. However, if people would consult with a bankruptcy lawyer sooner rather than later, they could avoid many of the mistakes that people make prior to filing bankruptcy.
Why Should You Talk to a Bankruptcy Attorney Now?
Dealing with debt problems is stressful and overwhelming. Many people feel as if they need to hide their financial problems and they are embarrassed that they need help; however, almost everyone deals with a financial crisis at some point during their life. Job loss, health problems, divorce and other life events can easily cause a financial crisis. When the bills become overwhelming, consult with a bankruptcy attorney before you make any major decisions. A bankruptcy attorney can help you find an affordable solution to your debt problems but he cannot “undo” the mistakes you make before you consult with him.
Mistakes to Avoid Before Meeting with a Bankruptcy Attorney
- Using retirement funds to pay bills – Retirement accounts are protected in bankruptcy from creditors and the court. You can erase your unsecured debts through bankruptcy while protecting the retirement funds you need for your retirement.
- Selling assets – It seems like a good idea to liquidate your assets to pay your bills; however, in most bankruptcy cases debtors keep all of their assets. In some cases, it may be better to liquidate an asset prior to filing bankruptcy but you want to discuss this with an experienced bankruptcy attorney before you make a mistake that cannot be undone.
- Paying lump sums to creditors – This is money that is wasted if you file bankruptcy. If you cannot continue to pay your debts and must file a bankruptcy case, any large sums that you paid those creditors will be lost. Rather than doing this, consult with a bankruptcy attorney first and save that money to provide for your family’s needs.
- Borrowing money against your home to consolidate debts – Tapping into your home’s equity to pay credit cards is a potentially dangerous decision. If you cannot afford the credit card payments, it is likely that you cannot afford a second mortgage. You can get rid of credit card debt in a bankruptcy but you cannot get rid of a second mortgage. If you cannot pay the mortgage payments, you will lose your home.
Do not make mistakes that will harm your financial well-being. Call my office for a bankruptcy consultation so that I can help you find an affordable solution to your debt problems that will protect your assets, get rid of debt and put you on a path to a better financial future.
Contact an Experienced Mount Holly Bankruptcy Attorney
Personal Approach, Professional Service, Affordable Payment Plans
The Law Office of Travis J. Richards, LLC is a full-service Mount Holly bankruptcy law firm focused on Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, debt consolidation, credit repair, tax liens, student loans and foreclosure. We represent clients in Burlington County and throughout South Jersey.
Contact our office at 609-267-5297 to schedule your free consultation to discuss bankruptcy and non-bankruptcy alternatives. You may also use our convenient online contact form and one of our friendly, professional staff members will contact you to answer your bankruptcy questions and/or schedule a free consultation with Travis J. Richards.
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