affordable bankruptcy attorney bankruptcy attorney office When Good Deeds Get Men and Women Into Serious Financial Trouble Sometimes people get into financial trouble because they meant well and were trying to do the right thing. They might co-sign a loan for a close friend, for example, only to be stuck with the payments when the friend defaults. Another situation occurs when someone takes a large amount of money out of savings to get a friend or relative out of financial difficulty, then experiences a job loss. Consumer Bankruptcy Attorneys help these men and women when their situation becomes overwhelming. Chapter 7 and 13 Further problems may loom ahead, although bankruptcy provides significant relief. For example, if the loan the person co-signed was a student loan, that usually cannot be discharged in Chapter 7 bankruptcy. Chapter 13, another common form of consumer bankruptcy protection, is a program through which people can repay all or most of their outstanding debt within five years. Many men and women don't have enough income to qualify for this program, however. The Continuing Struggle The sooner someone who cannot climb out of the debt trap seeks bankruptcy protection, the better. Unfortunately, many men and women connect their financial circumstances with their self-worth. are too ashamed to consider bankruptcy, so they keep struggling to make payments. They juggle all the bills and get further behind. They take on even more debt by maxing out credit cards to pay the electric bill, the heat bill and the water bill every month. Stopping Collections Activity Most creditors are not allowed to continue collections activity after the paperwork has been filed. The person will still face the student loan co-signing issue, but credit card companies must stop making contact. is considered a court order. The relief when the phone calls stop can be substantial. Starting the Conversation At a minimum, the person should start the conversation by scheduling a free consultation with a bankruptcy attorney or two. During the consultation, the person will not need a precise list of all the debt, but it will help to have the tally of the past six months' income and an estimate of how much is owed to each creditor. By discussing options with a lawyer, this individual starts to understand what steps can be taken in case there truly is no winning lottery ticket or some other form of rescue. The possibility of filing may no longer seem so embarrassing. Instead, they can view this is the chance to make a new start and to be more cautious with their finances in the future.
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