Bankruptcy is one of the options to you when you are so far into debt that you see no other way to get out of it. When you declare bankruptcy, you set up a payment plan with your creditors in order to pay your bills. Some of your debts may be forgiven and some of your creditors may forgive part of the debt so that they get at least some of the money that you owe them. Your payment plan may last for several years so that payments you make will be on a budget you can afford. If you are thinking of filing for bankruptcy, there are some people you should consult with first.
A Credit Counselor
You may be required to take some credit counseling when you are filing for bankruptcy, but it's also something you can do on your own before you even file. A credit counselor can help you consolidate bills so that you have fewer bills to pay. They can also help you prioritize which bills you should pay first. A credit counselor will look at your income and your spending and help you figure out where you can cut back so that better afford to start paying off your debts.
A Bankruptcy Attorney
You may be able to file for bankruptcy on your own, but the problem then is that you risk not having your filing handled correctly. There are different kinds of bankruptcy, and you may think that you qualify for one when you should really take another one. If you try to file for the wrong kind of bankruptcy, your filing may not be approved and you will have to start everything over because you were using the wrong rules. Meanwhile, your debt will continue to accrue, and you are going to end up owing even more. A lawyer can help you choose the type of bankruptcy that is appropriate for you. They will be able to help you protect the assets that you can keep and dispose of other assets correctly. Your attorney can also negotiate with your creditors to get you the best possible settlement. You will still have to pay some of them off, but your attorney may be able to get that payment lower than you could on your own. Contact a lawyer, such as Flippin Thomas C, for more information.
If your debts are just so overwhelming that there is really no way that you can see to pay them, bankruptcy may be the appropriate choice for you.