Nearly everyone gets behind on their bills at some point in their lives. While most of the time, catching up is possible through budgeting and discipline, there are other times when it is nearly impossible to pay off all of the outstanding balances, interest and late fees. If you have gotten behind on several bills and are being barraged with phone calls, letters and even visits to your home, bankruptcy may be a good option for you.
Some debts cannot be discharged in bankruptcy. If the majority of your financial stress comes from owing money for student loans, child support, alimony or taxes, you may not benefit much from filing for bankruptcy. However, if paying high-interest credit card bills and other unsecured debts are making it impossible for you to manage your family obligations, educational expenses and taxes, bankruptcy may provide some relief for you.
When you file for Bankruptcy in Santa Ana, your creditors are required to stop all collection activity. This simple rule in the bankruptcy law can give you time to create a plan of action to get out of your financial crisis. By working with an experienced bankruptcy attorney, you can find out which debts can be discharged, or erased, and which assets you may be able to keep after your bankruptcy is complete. In some cases, people are able to keep their personal vehicle and the home they reside in, even if they are financed.
A bankruptcy attorney, such as Winterbotham Parham Teeple, can help you evaluate your financial situation to determine if bankruptcy will help reduce your debt obligations. Your attorney may also take the time to explain how a bankruptcy filing will affect your ability to get new credit after your debts are discharged.
Many people who file for bankruptcy protection work closely with a credit counselor to help them avoid getting back into an unmanageable financial situation. With diligent budgeting, affordable housing and on-time bill payment, you can rebuild your credit after bankruptcy and possibly have a more stable financial situation than before. Bankruptcy isn’t for everyone. Your attorney can give you the information you need to decide if it is right for you.
